If the Interest Rate Is 7

question 4

Multiple Choice

If the interest rate is 7.5 percent,a dollar received a year from now has a present value of

• A) $1.075.
• B) $0.93.
• C) $0.875.
• D) $0.82.
• E) $0.75.

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Definitions:

Groupthink

An occurrence in psychology where the pursuit of agreement or adherence within a group causes choices that are irrational or counterproductive.

Bad Decisions

Choices or judgments that lead to undesirable outcomes due to flawed reasoning or poor judgment.

Parasympathetic Nervous System

A component of the autonomic nervous system responsible for conserving energy by slowing the heart rate and increasing intestinal and glandular activity.

Neurons

Specialized nervous system cells responsible for conveying information to other neurons, muscles, or glands.