When Calculating the Present Value of a Stream of Payments

question 1

Multiple Choice

When calculating the present value of a stream of payments at a market yield of 5% compounded semi- annually, the numerator in the fourth period of the calculation is:

• A) (1.05) to the power of 4.
• B) (1.025) to the power of 4.
• C) (1.10) to the power of 4.
• D) (1.0125) to the power of 4.

---

Definitions:

Cerebellum

A region of the brain that plays a vital role in motor control, and it also contributes to coordination, precision, and accurate timing.

Cerebellum

A part of the brain located at the back of the skull, crucial for coordination, precision, and timed movements, as well as motor learning.

Coordinating

The action or process of organizing and managing various elements or individuals to work efficiently together towards a common goal.

Semantic Memory

A type of long-term memory involving the capacity to recall words, concepts, or numbers, which is necessary for the use and understanding of language.