What Is the Present Value of 10 Payments of $500

question 58

Multiple Choice

What is the present value of 10 payments of $500 each received every 24 months at a discount rate of 12%?

• A) $1,840.93
• B) $1,332.60
• C) $2,825.11.
• D) $1,761.66

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Definitions:

Defense Mechanisms

Psychological strategies employed unconsciously to protect oneself from anxiety-arising thoughts or feelings.

Threatening Impulses

Internal urges or desires that are perceived as a danger or threat to one's well-being or the social order.

Ego

The ego, in psychology, represents the realistic part of the mind that mediates between the desires of the id, the moralizing role of the superego, and the external world.

Psychosexual Stages

A Freudian theory that developmental stages beginning in infancy during which the pleasure-seeking energies of the id become focused on certain erogenous zones.