If You Have an Investment That Will Receive $100 at the End

question 65

Multiple Choice

If you have an investment that will receive $100 at the end of year one,$200 at the end of year two,and $300 at the end of year three,what is the market value of this investment today if the discount rate is 13 percent annually?

• A)$553
• B)$453
• C)$423
• D)$383

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Definitions:

Confirmation Bias

Confirmation bias is the tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Counterfactual Thinking

The mental process of imagining alternative scenarios and outcomes that didn't actually happen.

Seguin Form Board

A psychological test used primarily with children to assess their ability to recognize shapes and their manual dexterity by placing shapes into corresponding cut-outs.

Performance Test

An assessment method that requires individuals to execute specific tasks or activities rather than answer questions, measuring skills and abilities through actual performance.