Assuming a 6% Rate of Return, How Does the Present

question 90

Multiple Choice

Assuming a 6% rate of return, how does the present value of an amount to be received two years from today compare to the present value of the same amount to be received three years from today?

• A)The present value of the amount to be received in two years is greater than the present value of amount to be received three years from today.
• B)The present value of the amount to be received in two years is lesser than the present value of amount to be received three years from today.
• C)The present values of the two amounts are equal.
• D)It is impossible to tell unless the actual amount to be received is known.

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Definitions:

Interpret Instruction

involves understanding and following directions provided in written, oral, or another form.

Scene Comprehension

The cognitive process of making sense of what is seen in the environment, recognizing and understanding the context, elements, and dynamics of a visual scene.

First Thought

A concept referring to the initial idea or reaction one has in response to a stimulus before deeper processing occurs.

Eye-Movement Data

Information collected on the direction, speed, and pattern of movements of the eye, often used in psychological and visual research.