If You Make an Investment and Agree to Pay Regular

question 49

Multiple Choice

If you make an investment and agree to pay regular monthly payments of $450 at the end of the next twelve months,starting one month from today,what is the present value of this investment if the interest rate is 8.4% per annum compounded monthly?

• A) $3322.06
• B) $4916.30
• C) $5162.12
• D) $5198.25

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Definitions:

Relaxation Training

Techniques taught to reduce stress and anxiety by relaxing the mind and body.

Induction

The process of being placed into a hypnotic state.

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A trait describing individuals who are more likely to accept and incorporate ideas or attitudes suggested by others.

Decrease Anxiety

The process or methods used to reduce feelings of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.