Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 27 - Part IX - The Basic Tools of Finance - Quick Check Multiple Choice - Page 582: 1

Answer

b. exactly \$100.

Work Step by Step

The future amount requires that a certain present amount must be deposited today in order to reach that future amount. Since the interest rate is at zero, the amount of money deposited today would be worth the same amount in ten years. Thus, the present value remains at \$100.
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