Multiple Choice
You receive $500 today which you plan to save for two years.Also,in two years you will be given another $500.If the interest rate is 5 percent,what is the present value of the payment of $500 today and the $500 in two years?
A) $500(1.05) 2 + $500/(1.05) 2
B) $500(1.05) 2 + $500
C) $500 + $500/(1.05) 2
D) $500 + $500
Correct Answer:
Verified
Correct Answer:
Verified
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