If the Interest Rate Is R (Expressed as a Decimal

question 131

Multiple Choice

If the interest rate is r (expressed as a decimal number) , the present value today of $1 to be received n years from today equals ____.

• A)$1rn
• B)$1(1 + r)n
• C)$1/(1 + r)n
• D)$1/(1 + n)r

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Definitions:

Confounding Variable

An external variable that can cause a false association between the variables being studied, potentially leading to incorrect conclusions.

Biological Perspective

The approach to psychology that seeks to understand the nature of the links between biological processes and structures such as the functioning of the brain, the endocrine system, and heredity, on the one hand, and behavior and mental processes, on the other.

Mood Disorders

A category of mental health disorders characterized by a serious change in mood that cause disruption to life activities, including major depressive disorder and bipolar disorder.

Stratified Sample

A sample drawn so that identified subgroups in the population are represented proportionately in the sample.