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Solved: If the interest rate is 10%, the present value of $1 paid to you one year from
Chapter 0, Problem 3(choose chapter or problem)
QUESTION:
If the interest rate is 10%, the present value of $1 paid to you one year from now is a. $0. b. $0.89. c. $0.91. d. $1. e. more than $1.
Questions & Answers
QUESTION:
If the interest rate is 10%, the present value of $1 paid to you one year from now is a. $0. b. $0.89. c. $0.91. d. $1. e. more than $1.
ANSWER:Step 1 of 2
The percentage of the principal amount which the borrower is obligated to pay the lender, in addition to the principal amount, is referred to as the rate of interest. The interest rate is levied at regular intervals and increases for a loan of a longer duration.