What Is the Present Value of $100 One Year from Now

question 2

Multiple Choice

What is the present value of $100 one year from now at an interest rate of 5%?

• A) $5
• B) $95.24
• C) $100
• D) $105

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Definitions:

Cocktail Party Effect

The ability of individuals to focus one's auditory attention on a specific source while filtering out a range of other stimuli, as at a noisy gathering.

Cognitive Neuroscience

A branch of neuroscience that studies the biological processes and aspects that underlie cognition, with a focus on the neural connections in the brain involved in mental processes.

Cognition

The endeavor of acquiring knowledge and apprehension through intellectual activities, experiences, and the perception of senses.

States Of Consciousness

Different levels of awareness of one's environment and self, ranging from fully alert and aware to various stages of sleep and altered states.