If you are to receive a payment of 200 at the end of the first ...

[kfurse]

If you are to receive a payment of 200 at the end of the first year and a payment of 250 at the end of the second year and the market interest rate is 5 percent, the present value of this income stream is
 a. 400.37
  b. 417.23
  c. 450.00
  d. 475.37
  e. 490.13

Question 2

Foreign exchange means
 a. changing dollars into foreign currency
  b. domestic currency held to finance international trade
  c. foreign currency
  d. trade between governments
  e. trade between individuals in different countries

[nmyers]

Answer to Question 1

B

Answer to Question 2

C