Which of the Following Decisions Would Involve the Use of the Present

question 79

Multiple Choice

Which of the following decisions would involve the use of the present value of $1?

• A) Your brother buys your car and offers to pay you $500 per year for three years or $1,500 in two years.
• B) You win a lawsuit and are offered a lump-sum payment today of $100,000 or $15,000 a year for 20 years.
• C) Your father and mother wish to deposit enough money on the date of your high school graduation to enable you to take a cruise that will cost $7,000 when you graduate from college in 4 years.
• D) You want to have $1,000,000 in order to retire at age 55, but need to know how much you will need to deposit each year from now until your 55th birthday.

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Definitions:

Uncontrolled Case Study

An observational analysis of a single subject or case without the use of a control group for comparison.

Single-Subject Experimental Designs

Research methods focusing on the response of an individual participant to controlled experimental variables.

Uncontrolled Case Studies

Research design involving detailed investigation of an individual or group without manipulation of variables, often lacking a control group for comparison.

Group Experimental Designs

Research designs that involve manipulating one or more independent variables to observe the effect on a dependent variable across different groups.