You Want to Find the Equivalent Present Worth for the Following

question 15

Multiple Choice

You want to find the equivalent present worth for the following cash flow series at an interest rate of 15%. Which of the following statements is incorrect?

• A) \( \$ 1,000(P / A, 15 \%, 4)+\$ 2,000+\$ 2,000(P / F, 15 \%, 5) \)
• B) \( \$ 1,000(P / F, 15 \%, 5)+\$ 1,000(P / A, 15 \%, 5)+\$ 2,000 \)
• C) \( [\$ 1,000(F / A, 15 \%, 5)+\$ 1,000](P / F, 15 \%, 5)+\$ 2,000 \)
• D) \( [\$ 1,000(F / A, 15 \%, 4)+\$ 2,000](P / F, 15 \%, 4)+\$ 2,000 \)

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Definitions:

Procedural Memory

Refers to the long-term memory that is responsible for knowing how to perform tasks, such as walking or riding a bike, without consciously thinking about them.

Declarative Memory

A type of long-term memory that allows individuals to consciously recall facts and events.

Semantic Memory

A type of long-term memory that involves the capacity to remember meanings, concepts, and factual information.

Episodic Memory

The type of long-term memory that involves the recollection of specific events, situations, and experiences.