Which of the Following Statements Is True

question 116

Multiple Choice

Which of the following statements is true?

• A)The higher the discount rate, the higher the present value.
• B)The process of accumulating interest on interest is referred to as discounting.
• C)If money is worth 10% compounded annually, $1,100 due one year from today is equivalent to $1,000 today.
• D)If a single sum is due on December 31, 2015, the present value of that sum decreases as the date draws closer to December 31, 2015.

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Definitions:

Theoretical Accounts

These are explanations or models proposed by researchers to understand and describe various phenomena or behaviors based on observed data and evidence.

Evolutionary Social Psychology

An approach in social psychology that examines how evolutionary principles influence human social behavior, thoughts, and emotions.

Ethology

Approach that argues that animal behaviour should be studied in the species’ natural physical and social environment. Behaviour is genetically determined and is controlled by natural selection.

Death Instinct

A psychoanalytic concept suggesting that individuals possess an unconscious wish to die or self-destruct, counterbalanced by life-sustaining instincts.