If the Opportunity Cost Rate Is 8% and Is Compounded

question 44

Multiple Choice

If the opportunity cost rate is 8% and is compounded annually, what is the present value of $8,200 due to be received in 12 years? Use the equation method to determine the present value.

• A) $3,068
• B) $3,254
• C) $3,552
• D) $3,688
• E) $3,854

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually triggers a conditioned response.

Original Stimulus

The initial factor or event that triggers a response or reaction in a behavioral, emotional, or cognitive context.

External Causes

Involves factors or circumstances outside an individual or system that impact outcomes or situations.

Internal Causes

Factors within a person, such as beliefs, desires, or personality traits, that explain their behaviors and decisions.