What Is the Present Value of a Future Income Stream

question 87

Multiple Choice

What is the present value of a future income stream of three $12,000 payments to be received one, two, and three years from today if the interest rate is 2.8 percent?

• A)$32,799
• B)$34,074
• C)$28,134
• D)$11,046

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Definitions:

Semistructured Interview

A method of interviewing that combines pre-determined questions with the flexibility to explore topics in depth.

Psychiatric Settings

Environments or contexts in which mental health treatments and assessments take place, including hospitals, clinics, and outpatient facilities.

Diagnostic Interview Schedule

A structured assessment tool used by clinicians to diagnose psychiatric conditions based on standardized criteria.

Wechsler Adult Intelligence Scale

The most widely used IQ tests, designed to measure diverse aspects of intelligence. Developed by David Wechsler (1896–1981). See also WAIS-IV.