If the Interest Rate Is 5 Percent, the Present Value

question 2

Multiple Choice

If the interest rate is 5 percent, the present value of $2,000 to be received one year from today is about

• A) $2,005.
• B) $1,995.
• C) $1,905.
• D) $2,100.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.