You Need to Calculate the Present Value of an Amount

question 34

Multiple Choice

You need to calculate the present value of an amount at 10% compounded quarterly for 2 years. What interest factor will you use?

• A) 10% for 4 periods
• B) 2.5% for 8 periods
• C) 20% for 2 periods
• D) 10% for 8 periods

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Definitions:

Somatization Disorder

A mental disorder characterized by recurrent, multiple, and current clinical complaints about somatic symptoms without a physical cause.

Illness Anxiety Disorder

A chronic condition characterized by excessive worry about having or developing a serious illness, despite medical reassurance.

Phobic Disorder

A type of anxiety disorder characterized by an irrational and excessive fear of specific objects, activities, or situations.

Anhedonia

A condition characterized by the inability to experience pleasure from activities usually found enjoyable.