The Ability to Quickly Calculate a 10 Percent Discount on an Item

question 188

Multiple Choice

The ability to quickly calculate a 10 percent discount on an item would be an example of:

• A) crystallized intelligence
• B) fluid intelligence
• C) generative intelligence
• D) applying intelligence

---

Definitions:

Present Value Factors

Multipliers used to calculate the present value of a future amount of money or stream of cash flows given a specific discount rate.

Net Present Value

A financial metric that evaluates the profitability of an investment or project by calculating the present value of expected future cash flows, minus the initial investment cost.

Annuity

A financial instrument that disburses a set series of payments to a person, often employed as a revenue flow for individuals in retirement.

Rate of Return

The increase or decrease in the value of an investment for a given time frame, represented as a proportion of the investment's starting price.