If the Single Amount of $3000 Is to Be Received

question 8

Multiple Choice

If the single amount of $3000 is to be received in 3 years and discounted at 6% its present value is

• A) $2519.
• B) $2830.
• C) $2600.
• D) $2820.

Understand the importance of timing and sequence in strategic business decisions.

Understand the concept of confirmation bias and how it influences decision-making.

Recognize the advantages of group decision-making over individual decision-making.

Identify and explain the phenomenon of decision fatigue and its consequences.

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Definitions:

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Endowment

In economics, an endowment is the total range of assets, including both physical goods and intangible elements like labor skills, that an individual or entity owns.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.