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:

Capability Dimension

Refers to the various capabilities or abilities individuals have or need to perform certain tasks or to function in particular areas of life.

Participation Dimension

Refers to the aspect of engagement or involvement in a particular activity or domain, often considered in social and communal contexts.

Deficit Dimension

A theoretical concept indicating a lack or shortfall in cognitive, emotional, or behavioral functioning.

Perry Preschool Project

A landmark early childhood education study that focused on the effects of preschool education on young children from low-income families in Ypsilanti, Michigan.