A Cash-Strapped Young Professional Offers to Buy Your Car with Four,equal

question 89

Multiple Choice

A cash-strapped young professional offers to buy your car with four,equal annual payments of $3,000,beginning 2 years from today.Assuming you're indifferent to cash versus credit,that you can invest at 10%,and that you want to receive $9,000 for the car,should you accept?

• A) Yes; present value is $9,510.
• B) Yes; present value is $11,372.
• C) No; present value is $8,645.
• D) No; present value is $7,461.

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Definitions:

Psychophysiological Measure

Methods used to study the relationship between physiological processes and psychological states through the measurement of physical responses, such as heart rate or brain activity.

Neuroimaging Techniques

Various methods used to visualize the structure and function of the brain and nervous system, such as MRI and PET scans.

Electroencephalograph

An instrument used to record the electrical activity of the brain, typically over a period, to diagnose conditions or monitor brain activity.

Memory-Enhancing Pill

A hypothetical or theoretical pill designed to improve one's ability to remember and recall information.