The amount today that would be needed, at prevailing interest rates, to produce a particular sum in the future is known as ?
Correct answer: C. present value
- A. future value
- B. fair value
- C. present value
- D. compound value
- E. beginning value
Explanation
Present value converts a future payment into its equivalent amount today using the prevailing interest rate. Future value performs the opposite calculation by accumulating today’s amount forward.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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