The Present Value of $100 Expected in Two Years from Today

question 91

Multiple Choice

The present value of $100 expected in two years from today at a discount rate of 6% is:

• A) $116.64
• B) $108.00
• C) $100.00
• D) $89.00

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Definitions:

Normative Conformity

The tendency to behave in ways that are in line with the group's norms or expectations in order to fit in or gain approval.

Devil's Advocate

Someone who adopts a position they do not necessarily agree with, for the sake of argument or to explore the thought process.

Asch's Line-Judging

Definition: An experiment conducted by Solomon Asch that demonstrated the power of conformity in groups, where individuals often agree with clearly incorrect majority opinions.

Autokinetic Effect

A phenomenon where a stationary point of light in a dark room appears to move due to small involuntary eye movements.