Present and Future Value Tables of $1 at 9% Are

question 28

Multiple Choice

Present and future value tables of $1 at 9% are presented below.

-LeAnn wishes to know how much she should invest now at 7% interest in order to accumulate a sum of $5,000 in four years. She should use a table for the:

• A) Present value of $1.
• B) Future value of $1.
• C) Present value of an ordinary annuity of $1.
• D) Future value of an annuity due of $1.

---

Definitions:

Stereotyping

Assigning a fixed, generalized idea or identity to individuals based on their membership in a particular group, often leading to prejudgment.

Duplex Mind

The concept that the human mind operates on two levels: automatic, intuitive processing, and deliberate, rational thought.

Automatic System

Part of the cognitive system that is fast, unconscious, and requires minimal effort, as opposed to the effortful, conscious processing system.

Deliberate System

The deliberate system, in psychological theory, refers to one of two systems of thinking: slower, more rational, and conscious thought processes that require effort and deliberation.