You Have Been Told That You Need $25,600 Today in Order

question 32

Multiple Choice

You have been told that you need $25,600 today in order to have $100,000 when you retire 35 years from now.What rate of interest was used in the present value computation? Assume interest is compounded annually.

• A)3.97 percent
• B)4.15 percent
• C)4.29 percent
• D)4.53 percent
• E)4.58 percent

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Definitions:

Defence Mechanism

Psychological strategies brought into play by individuals, groups, or even nations to cope with reality and maintain self-image.

Identification

The process of recognizing and acknowledging something or someone as being a specific person or thing.

Inferiority

A feeling of being less than, not as important, or lacking in some way compared to others, which can impact an individual's self-esteem and overall psychological well-being.

Defence Mechanism

Psychological strategies brought into play by individuals, unconsciously, to protect themselves from anxiety or to provide a refuge from a situation with which they cannot currently cope.