Using the Following Partial Table of Present Value of $1

question 21

Multiple Choice

Using the following partial table of present value of $1 at compound interest, determine the present value of $20,000 to be received four years hence with earnings at the rate of 12% a year: ? $$\begin{array} { c c c c } \text { Year } & 6 \% & 10 \% & 12 \% \\\hline 1 & 0.943 & 0.909 & 0.893 \\2 & 0.890 & 0.826 & 0.797 \\3 & 0.840 & 0.751 & 0.712 \\4 & 0.792 & 0.683 & 0.636\end{array}$$

• A) $13,660
• B) $15,840
• C) $12,720
• D) $10,400

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Definitions:

Industrial/Organizational Psychologist

A professional who applies psychological theories, principles, and research methods to understand workplace behavior, enhance employee well-being, and improve organizational performance.

Medical Doctor

A trained professional who practices medicine, which involves promoting, maintaining, or restoring health through the study, diagnosis, prognosis, and treatment of disease, injury, and other physical and mental impairments.

Clinical Psychologist

A professional specializing in diagnosing, treating, and preventing mental, emotional, and behavioral disorders through various forms of therapy.

Psychiatrist

A medical doctor specializing in the diagnosis, treatment, and prevention of mental health and emotional disorders, capable of prescribing medication.