Assume That You Will Receive $ 5,000 Cash Each Year

question 78

Multiple Choice

Assume that you will receive $ 5,000 cash each year for four years. Considering a discount rate of 2%, what is the present value of this annuity?

• A) $ 19,038.64
• B) $ 9,430.45
• C) $ 20,400.00
• D) $ 16,236.40

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Definitions:

Two-Factor Theory

A concept in psychology that emotion is based on physiological arousal and cognitive label.

Spillover Effect

A phenomenon where an occurrence in one area, sector, or context affects another; in psychology, it may refer to emotions or behaviors transferring from one area of life to another.

James-Lange Theory

A theory of emotion suggesting that emotions occur as a result of physiological reactions to events.

Cannon-Bard Theory

A theory of emotion that proposes emotions and bodily reactions occur simultaneously and independently of one another.