Which of the Following Equations Shows How to Determine the Future

question 67

Multiple Choice

Which of the following equations shows how to determine the future value (P₁) at the end of one year of a payment or deposit (P₀) made today?

• A) P₀ = P₁/1+r
• B) P₀ (1+r) = P₁
• C) P₀ = P_n/(1+r)ⁿ
• D) none of the above are correct

---

Definitions:

Freud

Sigmund Freud was an Austrian neurologist known for founding psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often reflecting concerns about future events.

Weak Superego

A condition in which the part of a person's mind that checks impulses, commonly associated with moral guidance, is not strong or well-developed.

Inferiority Complex

A psychological phenomenon in which an individual feels a deep sense of inadequacy or inferiority, often leading to overcompensation or withdrawal.