How much should you be willing to pay today for promise

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Reference no: EM131884755

1. A business acquaintance promises to deliver a $20 bill to you one year from today. How much should you be willing to pay today for this promise?

A) Less than $20

B) More than $20

C Excatly $20

2. What is the present value of $1,000 received three years from today if interest rates are currently 6 percent?

3. What is the interest rate on a three-year investment with a future value of $1000 and a present value of $863.84?

4. The Product Rule of Exponents says that when multiplying two powers that have the same base, you need to ________.

A) Divide the exponets

B) Multiply the exponets

C) Subtract the exponets

D) Add the exponets

5. The fifth root of fifteen is equal to ________.

A) 15 raised to the power of 15

B) 1 raised to the power of 1/5

C) one fifthteenth of 15

D) one fifth of 15

Reference no: EM131884755

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