Suppose You Will Receive $800 in Two Years

Multiple Choice

Suppose you will receive $800 in two years.If the interest rate is 5 percent,then the present value of this future payment is

A) $725.62.It would be higher if the interest rate were higher.
B) $727.28.It would be higher if the interest rate were higher.
C) $725.62.It would be lower if the interest rate were higher.
D) $727.28.It would be lower if the interest rate were higher.