What Is the Present Value (PV)of an Investment That Pays

question 95

Multiple Choice

What is the present value (PV) of an investment that pays $10,000 every year for four years if the interest rate is 7% APR,compounded quarterly?

• A)$33,730
• B)$33,872
• C)$38,680
• D)$40,000
• E)$30,516

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Definitions:

Cognitive Style

An individual's preferred method for processing information, thinking, and making decisions.

Linguistic Relativity

The hypothesis that one's language influences and reflects the way one thinks and perceives the world.

Social Communication Theory

A theoretical framework that explains how individuals use language and other forms of communication to interact socially and create shared meanings.

Cognitive Styles

Individual differences in the way people perceive, think, solve problems, and remember information.