What Is the Present Value of $5,000 to Be Received

question 211

Multiple Choice

What is the present value of $5,000 to be received 10 years from now if the interest rate is 10 percent?

• A) $1,927.72
• B) $500
• C) $4,545.45
• D) $12,968.71

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Definitions:

Effort Justification

A cognitive dissonance resolution strategy where individuals attribute a greater value to an outcome that required a significant effort to achieve.

Court-Ordered Therapy

Therapy mandated by a court of law as part of a sentence or as a condition for probation, typically aimed at rehabilitation.

Minimal Deterrence

A strategy in nuclear policy that advocates for maintaining the smallest possible nuclear arsenal capable of deterring potential adversaries from taking aggressive actions.

Self-Serving Attributional Bias

The common tendency to attribute one's successes to personal characteristics and failures to external factors, aiming to protect self-esteem.