Present Value What Is the Present Value of a $750

question 54

Multiple Choice

Present Value What is the present value of a $750 payment made in 3 years when the discount rate is 5 percent?

• A)$646.96
• B)$647.88
• C)$712.50
• D)$868.22

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Definitions:

Continuity

Continuity refers to the consistent existence or operation of something over a period of time, indicating stability and lack of interruption.

Gestalt Principle

A theory in psychology suggesting that people tend to perceive objects as part of a greater whole rather than as isolated parts.

Proximity

The physical closeness or distance between people or objects, which can influence perceptions, attitudes, and behaviors.

Figure-ground

A visual perception principle that describes how humans separate an object (the figure) from its surrounding area (the ground).