If the Future Value of $1 Invested Today at an Interest

question 54

Multiple Choice

If the future value of $1 invested today at an interest rate of r% for n years is 9.6463, what is the present value of $1 to be received in n years at r% interest rate?

• A) $9.6463
• B) $1.00
• C) $0.1037
• D) None of the above

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Definitions:

Law of Effect

A principle in psychology that states behaviors followed by positive outcomes are likely to be repeated, while those followed by negative outcomes are not.

Organisational Behaviour Modification Strategy

A systematic approach to changing behavior within an organization using principles of behavior analysis and reinforcement.

Punishment

Imposing a penalty or sanction on someone as retribution for an offense or undesirable behavior.

Goal Setting Theory

A theory suggesting that the establishment of motivating, specific, and clear goals with appropriate feedback contributes to higher performance.