Use These Present Value Tables to Answer the Questions That

question 82

Multiple Choice

Use these present value tables to answer the questions that follow.
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Below is a table for the present value of $1 at compound interest.
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$$\begin{array} { c c c c } \text { Year } & 6 \% & 10 \% & 12 \% \\\hline 1 & 0.943 & 0.909 & 0.893 \\2 & 0.890 & 0.826 & 0.797 \\3 & 0.840 & 0.751 & 0.712 \\4 & 0.792 & 0.683 & 0.636 \\5 & 0.747 & 0.621 & 0.567\end{array}$$ Below is a table for the present value of an annuity of $1 at compound interest.
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$$\begin{array} { c c c c } \text { Year } & 6 \% & 10 \% & 12 \% \\\hline 1 & 0.943 & 0.909 & 0.893 \\2 & 1.833 & 1.736 & 1.690 \\3 & 2.673 & 2.487 & 2.402 \\4 & 3.465 & 3.170 & 3.037 \\5 & 4.212 & 3.791 & 3.605\end{array}$$
-Using the tables above, what would be the present value of $8,000 to be received one year from today, assuming an earnings rate of 12%?

• A) $7,544
• B) $7,120
• C) $7,272
• D) $7,144

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Definitions:

Autonomy

The capacity and right of individuals to make their own choices and govern themselves, often discussed in ethical, political, and psychological contexts.

Erikson

Erik Erikson was a psychologist known for his theory on psychosocial development, which posits that individuals go through eight stages of development, each characterized by a specific psychological conflict.

Avoidant Attachment

A type of attachment characterized by difficulty in getting emotionally close to others, independence, and self-reliance over forming relationships.

Van Ijzendoorn

Refers to Marinus H. van Ijzendoorn, a notable Dutch psychologist renowned for his research on attachment theory.