Solved

If a Friend Offers to Pay You $1 Five Years

Question 8

Multiple Choice

If a friend offers to pay you $1 five years from now, when the prevailing annual interest rate is 5%, what is the net present value of that $1 today?

A) $0.95
B) $1.05
C) $0.78
D) $1.50

Related Questions

Q3: You have heard about a new light

Q4: The _ the future payment, the _

Q5: The present value of a future payment

Q6: To finance your education, you borrow $10,000

Q7: You have recently graduated from high school

Q9: A semiconductor firm is considering opening a

Q10: Which of the following statements is INCORRECT?<br>A)The

Q11: The present value of a future payment

Q12: Use the following to answer questions: <img

Q13: The present value of a painting that