Your Uncle Wants to Help You with Your College Expenses,and

question 43

Multiple Choice

Your uncle wants to help you with your college expenses,and he promised to pay you $10,000 next year and $15,000 in two years.The current interest rate is 6%,and you expect that this interest rate will be the same for the next year and will increase to 8% in the year after.What is the formula that you should use to compute the present discounted value of your uncle's contribution to your education expenses?

• A)0 + 10,000 + 15,000
• B)10,000/(1.06)+ 15,000/((1.06)*(1.06))
• C)10,000/(1.06)+ 15,000/((1.06)(1.08))
• D)10,000/(1.06)+ 15,000/((1.08)(1.08))

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Definitions:

Autonomic Nervous System

The part of the nervous system that controls involuntary actions of the body, such as heart rate and digestion, and is divided into the sympathetic and parasympathetic nervous systems.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brain down through the spinal column, playing a critical role in transmitting nerve signals between the brain and the rest of the body.

Stomach Muscles

The muscles associated with the stomach, primarily responsible for the mechanical digestion of food through churning movements, and part of the broader group of muscles in the abdominal region.

Parasympathetic Nervous System

The part of the autonomic nervous system responsible for rest and digestion, reducing the body's fight or flight response.