Compute the Present Value of $4,000 Paid in Five Years

question 134

Multiple Choice

Compute the present value of $4,000 paid in five years using the following discount rates: 10 percent in year 1, 2 percent in year 2, 12 percent in year 3, and 9 percent in years 4 and 5.

• A) $2,679.15
• B) $2,206.81
• C) $2,317.03
• D) $2,362.19

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Definitions:

Behavior Patterns

Repetitive actions or reactions that are exhibited by individuals across different situations, often forming an identifiable part of their character or psychological profile.

Humanistic Approach

A perspective in psychology that emphasizes the study of the whole person and the uniqueness of each individual’s experience.

Aggressive Behavior

Actions that aim to harm or injure another individual, either physically or psychologically, often as a response to frustration or threat.

Basic Needs

Fundamental physiological and psychological necessities required for human survival and well-being, such as food, water, shelter, and belonging.