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You Are a Rookie Correctional Officer at a State Prison

question 63

Multiple Choice

You are a rookie correctional officer at a state prison. The day is coming to an end and the inmates are in their cells. As you make your rounds to count heads, one of the inmates asks you if you'd bring him a piece of dental floss. He says he has an uncooked grain of rice from dinner stuck in his back teeth and it is very painful. He only needs a small piece, surely not enough to pose any problem. According to prison rules, dental floss may only be used in the shower area, under observation. It is apparent to you that the inmate is in discomfort, and you know this inmate to be well-behaved. You are inclined to provide the dental floss. After all, this inmate has never given you trouble, and in fact you think that he might be helpful in the future when it comes to relations with troublesome inmates. Such a relationship would illustrate the concept of:

Definitions:

Future Value

The value of an investment or a sum of money projected at a future date, calculated by applying interest or growth rates to the present value.

Time Value

The theory that a sum of money is more valuable if it's available immediately, rather than the same amount in the future, because of its earning capabilities.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of money, typically expressed on an annual basis.

Present Values

This concept calculates the current worth of a future sum of money or stream of cash flows given a specified rate of return.