If a security pays $55 in one year and $133 in three years, its present value is $150 if the interest rate is

A) 5 percent.
B) 10 percent.
C) 12.5 percent.
D) 15 percent.

B

Economics

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Suppose an individual buys a new CD of her favorite musical artist. This purchase has taken place in the

A) labor markets. B) factor markets. C) resource markets. D) product markets.

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Under a fixed exchange rate system, central banks ________ meet the demand for their domestic currency and ________ meet the demand for foreign currencies

A) can always; can always B) can always; are limited in their ability to C) are limited in their ability to; are limited in their ability to D) are limited in their ability to; can never

Economics