What Is the Present Value of $800 to Be Received

question 13

Multiple Choice

What is the present value of $800 to be received in 5 years' time when the discount rate is 9% p.a.compounded quarterly?

• A)$519.95
• B)$512.65
• C)$509.75
• D)$515.69

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Definitions:

Long-Term Memory

The stage of memory involved in the storage and retrieval of information over an extended period.

Serial-Order Effect

A phenomenon observed in psychology where the order of information presentation affects memory and recall, with items presented early and late being remembered better than those in the middle.

List

A record of items, names, or tasks to be remembered, considered, or done, arranged in a systematic or sequential order.

Information Processing Model

A cognitive approach to understanding how the human mind transforms sensory information, involving stages such as encoding, storage, and retrieval of information.