What Is the Present Value of $1,000 to Be Received

question 269

Multiple Choice

What is the present value of $1,000 to be received 2 years in the future with an interest rate of 8 percent?

• A) $857.34
• B) $925.93
• C) $1080.00
• D) $1166.40

---

Definitions:

Observational Learning

A form of social learning that occurs through watching the behaviors of others and then imitating, or modeling, those behaviors.

Relatively Permanent

Describes a condition or effect that is long-lasting or enduring, though not necessarily unchangeable.

Reproduce Actions

The ability to mimic or perform the same actions as observed from others or as previously learned.

Acquire Skills

The process of learning or developing abilities and knowledge through practice, study, or experience.