The Discount Factor Used to Obtain the Present Value of Money

question 66

Multiple Choice

The discount factor used to obtain the present value of money in the next period where k represents the rate of return is

• A) k.
• B) 1+k.
• C) 1/(1+k).
• D) k /(1+k).
• E) none of the above

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Definitions:

Cognitive Learning

A process of acquiring knowledge and understanding through thought, experience, and the senses.

Emotional Learning

The process of acquiring knowledge about emotions and how to manage them, which can influence behavior and decision-making.

Cerebellum

A region of the brain that plays an important role in motor control, and it may also be involved in some cognitive functions such as attention and language.

Hippocampus

A region of the brain associated with memory formation, particularly long-term memory.