Using the Present Value Table, Calculate How Much Should Be $$\begin{array} { l l l l l l l l } \hline n & 0.5 \% & 1 \% & 1.5 \% & 2 \% & 3 \% & 4 \% & 5 \% \\\hline\end{array}$$

question 1

Multiple Choice

Using the present value table, calculate how much should be invested today to have $11,200 in 6 years at 8% interest compounded quarterly. $$\begin{array} { l l l l l l l l } \hline n & 0.5 \% & 1 \% & 1.5 \% & 2 \% & 3 \% & 4 \% & 5 \% \\\hline\end{array}$$ $$\begin{array} { l l l l l l l l } 21 & 0.90056010 & 0.81143017 & 0.73149795 & 0.65977582 & 0.53754928 & 0.43883360 & 0.35894236 \\22 & 0.89607971 & 0.80339621 & 0.72068763 & 0.64683904 & 0.52189250 & 0.42195539 & 0.34184987 \\23 & 0.89162160 & 0.79544179 & 0.71003708 & 0.63415592 & 0.50669175 & 0.40572633 & 0.32557131 \\24 & 0.88718567 & 0.78756613 & 0.69954392 & 0.62172149 & 0.49193374 & 0.39012147 & 0.31006791 \\25 & 0.88277181 & 0.77976844 & 0.68920583 & 0.60953087 & 0.47760557 & 0.37511680 & 0.29530277 \\26 & 0.87837991 & 0.77204796 & 0.67902052 & 0.59757928 & 0.46369473 & 0.36068923 & 0.28124073 \\27 & 0.87400986 & 0.76440392 & 0.66898574 & 0.58586204 & 0.45018906 & 0.34681657 & 0.26784832 \\28 & 0.86966155 & 0.75683557 & 0.65909925 & 0.57437455 & 0.43707675 & 0.33347747 & 0.25509364 \\29 & 0.86533488 & 0.74934215 & 0.64935887 & 0.56311231 & 0.42434636 & 0.32065141 & 0.24294632 \\30 & 0.86102973 & 0.74192292 & 0.63976243 & 0.55207089 & 0.41198676 & 0.30831867 & 0.23137745 \\31 & 0.85674600 & 0.73457715 & 0.63030781 & 0.54124597 & 0.39998715 & 0.29646026 & 0.22035947 \\32 & 0.85248358 & 0.72730411 & 0.62099292 & 0.53063330 & 0.38833703 & 0.28505794 & 0.20986617 \\33 & 0.84824237 & 0.72010307 & 0.61181568 & 0.52022873 & 0.37702625 & 0.27409417 & 0.19987254 \\34 & 0.84402226 & 0.71297334 & 0.60277407 & 0.51002817 & 0.36604490 & 0.26355209 & 0.19035480 \\35 & 0.83982314 & 0.70591420 & 0.59386608 & 0.50002761 & 0.35538340 & 0.25341547 & 0.18129029\end{array}$$

• A) 49,230.10
• B) $6,963.28
• C) $5,376.00
• D) $2,766.16

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Definitions:

General Adaptation Syndrome

A three-phase response pattern to stress defined by Hans Selye, consisting of alarm, resistance, and exhaustion stages.

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A state of extreme physical or mental fatigue, often resulting from prolonged stress or overwork.

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Stress and Health

The study of how stress affects physical and mental wellbeing, including its role in various diseases and conditions.