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$100 Today Is Worth

Question 45

Multiple Choice

$100 today is worth


A) the same as $100 to be received in one year, since the inflation rate has been low recently and funds received in the near future should have the same purchasing power that they have today.
B) less than $100 to be received in one year, since many people will spend money foolishly today and will become more careful in their spending habits as they mature.
C) more than $100 to be received in one year, since you can invest the money received today for this period, leaving you with more than $100 in the future.
D) the same as a future receipt of $100, since the physical characteristics of U.S. currency are unchanged for long periods of time.
E) less than $100 received by someone ten years ago, since many products have been improved over this time period.

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