What Is the Discount Factor for $1 to Be Received

question 109

Multiple Choice

What is the discount factor for $1 to be received in 5 years at a discount rate of 8%?

• A) .4693
• B) .5500
• C) .6000
• D).6806

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Definitions:

Paradox

A statement or proposition that, despite sound reasoning from acceptable premises, leads to a conclusion that seems logically unacceptable or self-contradictory.

Autonomous Responding

The ability of an individual to respond independently to stimuli or situations, based on their own choices or internal processes.

Dysfunctional Pattern

Maladaptive behaviors and patterns that interfere with an individual or group’s ability to function effectively.

Catharsis

The process of releasing and thereby providing relief from strong or repressed emotions, often considered therapeutic.