Present Value Factor for Reversion of $1 -Using Only the Information in the Table Above, Approximately How

question 21

Multiple Choice

Present Value Factor for Reversion of $1
$\begin{array}{cccccc}\text { Perlod } & 6 \% & 7 \% & 8 \% & 9 \% & 10 \% \\\hline 1 & .943396 & .934579 & .925926 & .917431 & .909091 \\2 & .889996 & .873439 & .857339 & .841680 & .826446 \\3 & .839619 & .816298 & .793832 & .772183 & .751315 \\4 & .792094 & .762895 & .713503 & .708425 & .683013 \\5 & .747258 & .712986 & .680583 & .644931 & .620921 \\6 & .704961 & .666643 & .630170 & .596267 & .564474\end{array}$
-Using only the information in the table above, approximately how much would you pay today for an investment that pays $0 annual interest, but earns 8% interest over the next four years and has a face value at maturity of $13,500?

• A) $8,000
• B) $9,000
• C) $10,000
• D) $11,000

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Definitions:

Selective Perception

Selective perception is the tendency to define problems from your own point of view.

Selective Perception

Selective perception is the process by which individuals perceive what they want in media messages while ignoring opposing viewpoints.

Stereotyping

The act of assigning generalized and often inaccurate or simplified attributes to a group of people, neglecting individual differences.

Projection

Projection is the assignment of personal attributes to other individuals.