The Present Value of $1,000 Received at the End of Year

question 63

Multiple Choice

The present value of $1,000 received at the end of year 1, $1,200 received at the end of year 2, and $1,300 received at the end of year 3, assuming an opportunity cost of 7 percent, is

• A)$2,500.
• B)$3,043.
• C)$6,516.
• D)$2,856.

---

Definitions:

Principle of Justice

A fundamental ethical guideline that ensures fair and equitable treatment for all individuals and the distribution of rewards and burdens in society.

Good Life

A concept in philosophy and ethics referring to a fulfilling, meaningful, and morally virtuous life, often associated with happiness, well-being, and flourishing.

Society

A group of individuals living together in a more or less ordered community with shared laws, traditions, and values.

Karl Marx

A 19th-century philosopher, economist, and revolutionary, who developed the theory of Marxism, emphasizing the roles of class struggle, economic exploitation, and historical development in capitalism.