What Is the Present Value of a Future Income Stream

question 87

Multiple Choice

What is the present value of a future income stream of three $12,000 payments to be received one, two, and three years from today if the interest rate is 2.8 percent?

• A)$32,799
• B)$34,074
• C)$28,134
• D)$11,046

---

Definitions:

Problem Definition

The process of clarifying and detailing the nature of a problem, which is the first step in problem-solving.

Solution Implementation

The phase of problem-solving where decided actions or strategies are put into practice in order to address and resolve the issue.

Severe Maladaptive Behaviors

Patterns of action or tendencies that are significantly detrimental to one's social, occupational, or physical wellbeing.

Problem-Solving Therapy

Problem-solving therapy is a cognitive-behavioral intervention designed to help individuals cope with life's challenges by developing more effective problem-solving skills.