Scenario: an Investor Is Considering Three Different Investment Options

question 30

Multiple Choice

Scenario: An investor is considering three different investment options. Investing in Option A pays him $4,000 after 6 years, investing in Option B pays him $7,600 after 7 years, and investing in Option C pays him $9,000 after 8 years. If he deposits the amount with a bank, he would receive an annual interest rate of 9 percent.
-Refer to the scenario above.What is the present value of Option A?

• A) $2,464.11
• B) $2,385.07
• C) $2,463.66
• D) $4,898.46

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Definitions:

Throwaway Question

A question asked by researchers during an interview that is intended to be easy for participants to answer, often used to warm up the respondent or to discard.

Essential Question

A broad, fundamental question that guides the research and focuses on the core issues being examined.

Semistandardized Interview

A type of interview that allows for a mix of predetermined questions and the freedom for interviewers to explore topics in more depth as needed.

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A structured interviewing format where each interviewee is asked the same questions in the same order to ensure consistency across interviews.