Multiple Choice
You have been promised a payment of $400 in the future.In which of the following cases is the present value of this payment the lowest?
A) You receive the payment 4 years from now and the interest rate is 4 percent.
B) You receive the payment 4 years from now and the interest rate is 5 percent.
C) You receive the payment 5 years from now and the interest rate is 4 percent.
D) You receive the payment 5 years from now and the interest rate is 5 percent.
Correct Answer:
Verified
Correct Answer:
Verified
Q97: You have a choice among three options.
Q183: At an annual interest rate of 10
Q186: A bond promises to pay $500 in
Q197: What is the future value of $800
Q198: Suppose you put $500 into a bank
Q199: You deposit $3,000 into an N-year certificate
Q200: The K-Nine dog food company is considering
Q203: On the Internet you find the following
Q204: At which interest rate is the present
Q206: In answering which of the following questions