Scenario: Tom Has Two Investment Options

question 144

Multiple Choice

Scenario: Tom has two investment options. He can either invest $3,000 in a friend's project or he can deposit the same amount in a bank that offers him an annual rate of interest of 6 percent. If he invests in his friend's project, he will receive $3,400 after 5 years.
-Refer to the scenario above.What is the present value of $3,400 to be received after 5 years?

• A) $2,300.78
• B) $2,540.68
• C) $3,200.22
• D) $3,526.44

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Definitions:

Characteristics

Traits or qualities that define an entity, making it identifiable or distinguishing it from others.

Self-Esteem

An individual's subjective evaluation of their own worth, encompassing beliefs and emotions such as pride and shame.

Reflected Appraisal

A concept in psychology that refers to a person's perception of how others see and evaluate them.

Narcissistic

A personality disorder characterized by an inflated sense of self-importance, need for admiration, and lack of empathy for others.