A) You receive $90.91 two years from today.
B) You receive $82.64 one year from today.
C) You receive $75.13 today.
D) All of these payments have the same present value to the nearest cent.
Correct Answer
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Multiple Choice
A) Interest rates rise and the cost of building the station rises.
B) Interest rates rise and the cost of building the station falls.
C) Interest rates fall and the cost of building the station rises.
D) Interest rates fall and the cost of building the station falls.
Correct Answer
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Multiple Choice
A) 2 percent
B) 4 percent
C) 6 percent
D) 8 percent
Correct Answer
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Multiple Choice
A) $100 deposited 1 year ago at an 8 percent interest rate
B) $100 deposited 2 years ago at a 4 percent interest rate
C) $100 deposited 4 years ago at a 2 percent interest rate
D) $100 deposited 8 years ago at a 1 percent interest rate
Correct Answer
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Multiple Choice
A) Interest rates rise and you get the payment sooner.
B) Interest rates rise and you have to wait longer for the payment.
C) Interest rates fall and you get the payment sooner.
D) Interest rates fall and you have to wait longer to get the payment.
Correct Answer
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Multiple Choice
A) $637.50 after 5 years and $822.09 after 10 years.
B) $637.50 after 5 years and $775.00 after 10 years.
C) $653.48 after 5 years and $854.07 after 10 years.
D) $688.36 after 5 years and $915.56 after 10 years.
Correct Answer
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Multiple Choice
A) $8,225.06.
B) $7,920.94.
C) $7,672.58.
D) $6,998.98.
Correct Answer
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Multiple Choice
A) 3.5
B) 7
C) 14
D) None of the above is correct.
Correct Answer
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Multiple Choice
A) 20 percent
B) 25 percent
C) 28 percent
D) None of the above is correct.
Correct Answer
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Multiple Choice
A) X = 809.33
B) X = 855.56
C) X = 895.42
D) X = 916.74
Correct Answer
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Multiple Choice
A) $1,050.00
B) $1,045.35
C) $1,000.00
D) $945.35
Correct Answer
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Multiple Choice
A) 3.5 percent
B) 4.5 percent
C) 5 percent
D) 7 percent
Correct Answer
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Multiple Choice
A) $240 paid in three years
B) $225 paid in two years
C) $210 paid in one year
D) $200 today
Correct Answer
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Multiple Choice
A) "an obsession among economists that defies explanation."
B) "the greatest mathematical discovery of all time."
C) his own discovery.
D) John Maynard Keynes's greatest contribution.
Correct Answer
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Multiple Choice
A) $100*(1 + r)
B) $100/(1 + r)
C) $100 - $100
r
D) $100 - (1 + r) /$100
Correct Answer
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Multiple Choice
A) Amy
B) Bill
C) Celia
D) They each get the same amount.
Correct Answer
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Multiple Choice
A) 2 percent
B) 3 percent
C) 4 percent
D) 5 percent
Correct Answer
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Multiple Choice
A) $12,000
B) $14,000
C) $15,500
D) $20,000
Correct Answer
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Multiple Choice
A) $500/(1.06) 2
B) $500 - 500(1.06) 2
C) $500/(1.02) 6
D) None of the above is correct.
Correct Answer
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Multiple Choice
A) $1,150.00
B) $1,157.63
C) $1,215.51
D) $1,250.00
Correct Answer
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