Find the Present Value, Using the Present Value Formula and a Calculator

question 53

Multiple Choice

Find the present value, using the present value formula and a calculator. ​
Achieve $8,000 in two years at 4.5% simple interest.
​

• A) $6,560.00
• B) $7,280.00
• C) $720.00
• D) $8,791.21
• E) $7,339.45

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Definitions:

Searching For Analogies

The cognitive process of finding relationships or similarities between different concepts or situations.

Similarities

Refers to the aspects in which two or more objects, ideas, or concepts are alike, often used to identify common traits or patterns.

Heuristic

A heuristic is a simple, efficient rule, whether hard-coded by evolutionary processes or learned, which helps in making decisions, forming judgments, or solving problems.

Making Risky Decisions

The process of making choices under conditions of uncertainty, where the outcomes could involve significant loss or gain.