If the Future Value of a Sum in One Year

question 76

Multiple Choice

If the future value of a sum in one year is $440 and the annual interest rate is 10%, what is the present value?

• A) $400
• B) $410
• C) $422
• D) $484

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Definitions:

Expectancy

The belief or anticipation that a particular event or outcome will occur.

Instrumentality

In the context of motivation theory, it refers to the perceived relationship between performing at a certain level and achieving a desired outcome.

Goal-Setting Theory

Goal-Setting Theory posits that specific, challenging goals along with appropriate feedback contribute significantly to motivation and performance, by focusing effort and fostering persistence.

Specific Goals

Clear, well-defined objectives that are measurable and time-bound, facilitating targeted actions and evaluations.