The Solution to This Problem Requires Time Value of Money

question 172

Multiple Choice

The solution to this problem requires time value of money calculations. Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. If you must calculate the present value of an amount at 8% compounded quarterly for 2 years, then the interest factor used in the calculation is

• A) 2% for eight periods
• B) twice that for one period at 8% multiplied by 2
• C) 8% for two periods
• D) the interest factor for 8% for two periods divided by 4

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Definitions:

Explicit Memory

Memory that involves conscious recollection of previous experiences, facts, or information, such as remembering names or historical dates.

Implicit Memory

Memory that is not deliberate or conscious but exhibits evidence of prior experience.

Nonamnesic Participants

Individuals involved in a study who do not suffer from amnesia, allowing researchers to compare their cognitive performance to those with memory impairments.

Cramming

The practice of intensively studying or memorizing information in a short period, usually immediately before an examination.