The Present Value That Will Give a Future Value S $1 + r$

question 232

Multiple Choice

The present value that will give a future value S in 4 years with interest compounded annually varies inversely as the fourth power of $1 + r$ r, where r is the annual interest rate. If the present value of $3.71 gives a future value
Of $5000, what would be the present value of $10,000? Round to the nearest dollar.

• A) $8
• B) $5
• C) $7
• D) $45

---

Definitions:

Bay Of Pigs Invasion

A failed military invasion of Cuba in 1961 by a CIA-sponsored paramilitary group, aiming to overthrow Fidel Castro's government.

Groupthink

The tendency among individuals in a group to prioritize agreement over critical thinking, leading to results in decision-making that are flawed or unwise.

Risky Shift

The phenomenon where a group collectively agrees on a course of action that is more extreme than they would have made individually.

Groupthink

In team environments, a pattern where the drive for cohesive thinking or obedience culminates in choices that are misguided or harmful.