In Calculating the Present Value of $1,000 to Be Received

question 14

Multiple Choice

In calculating the present value of $1,000 to be received 5 years from today, the discount factor has been calculated to be .7008. What is the apparent interest rate?

• A) 5.43%
• B) 7.37%
• C) 8.00%
• D)9.50%

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Definitions:

Repression

A defense mechanism where unwanted memories, thoughts, or desires are excluded from conscious awareness.

Proactive Interference

The effect where older information prevents the recall of newer information.

Repressed Memories

Memories involuntarily suppressed because they are linked to intense stress or trauma.

Hypnosis

A trance-like state of focused attention and heightened suggestibility, often used for therapeutic purposes.