What Is the Present Value of $1 Received Five Years

question 54

Multiple Choice

What is the present value of $1 received five years from now (rounded to two decimal places) if the discount rate is 12%?

• A) $1.76.
• B) $0.57.
• C) $1.00.
• D) $1.60.
• E) $0.89.

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Definitions:

Sociometric Status

An individual’s level of acceptance or popularity within a group, often measured through peer evaluation.

Middle Childhood

This term refers to the developmental stage between early childhood and adolescence, typically from ages 6 to 12, where children experience significant growth in cognitive, emotional, and social skills.

Divorce Rate

A statistical measure representing the ratio or number of divorces occurring within a population during a specific period.

Coregulation

A form of indirect social control in which parents and children cooperate to reinforce the children’s understandings of right and wrong and what is safe and unsafe when they are not under direct adult control.