Which of the following statements is correct? Select one: O a. None of the answers listed is correct. O b. £95 today is worth the same as £100 in one year's time if the interest rate is 5%. O c. If the annually compounding interest rate is 5%, then the present value of £100 in two years' time is £90.91. O d. If you pay £96 for an investment that pays £100 in one year's time when the interest rate is 5%, then your net present value is £0.76. O e. If the annually compounding interest rate is 5%, then the total present value (in Year 0) of receiving £100 at the end of Year 1 and £100 at the end of Year 2 is £185.94.

Which of the following statements is correct? Select one: O a. None of the answers listed is correct. O b. £95 today is worth the same as £100 in one year's time if the interest rate is 5%. O c. If the annually compounding interest rate is 5%, then the present value of £100 in two years' time is £90.91. O d. If you pay £96 for an investment that pays £100 in one year's time when the interest rate is 5%, then your net present value is £0.76. O e. If the annually compounding interest rate is 5%, then the total present value (in Year 0) of receiving £100 at the end of Year 1 and £100 at the end of Year 2 is £185.94.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 13PAE

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