What Is the Present Value of a $600 Payment in One

question 22

Multiple Choice

What is the present value of a $600 payment in one year when the discount rate is 8%?

• A) $498.61
• B) $525.87
• C) $555.56
• D) $575.09

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Definitions:

Rational-emotive

A form of psychotherapy that identifies and changes irrational beliefs, emphasizing emotional well-being through rational thinking.

Gestalt

A theory in psychology suggesting that the mind tends to perceive objects as whole patterns or configurations, rather than merely as sums of individual components.

Group

A number of individuals who come together or are classified together based on shared characteristics or for a common purpose.

Cognitive Models

Theoretical constructs that explain and predict thinking patterns, decision making, and problem solving in humans.