Finding the Discounted Current Value of $1,000 to Be Received

question 17

Multiple Choice

Finding the discounted current value of $1,000 to be received at the end of each of the next 5 years requires calculating the ____.

• A) future value of an annuity
• B) future value of an annuity due
• C) present value of an annuity
• D) present value of an annuity due

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Definitions:

Variables

Elements, features, or factors that are likely to vary or change and can be manipulated, measured, or controlled in scientific research.

Independent Variable

A factor or condition that is intentionally varied by the researcher to observe its impact on the dependent variable in an experiment.

Dependent Variable

In an experiment, it is the variable that is being tested and measured, expected to change as a result of manipulations to the independent variable.

Gustav Theodor Fechner

A German philosopher, physicist, and experimental psychologist, known as a founder of psychophysics, which quantifies the relationships between physical stimuli and the sensations and perceptions they affect.