What Is the Present Value of a $250 Deposit in Year

question 141

Multiple Choice

What is the present value of a $250 deposit in year 1, and another $50 deposit at the end of year 6 if interest rates are 10 percent?

• A) $120.00
• B) $169.34
• C) $255.50
• D) $278.22

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Definitions:

Mood

A temporary state of mind or feeling that affects an individual's emotional and psychological well-being.

Cannon-Bard Theory

A theory in psychology proposing that emotional feelings and physiological reactions to stimuli occur simultaneously and independently.

James-Lange Theory

A psychological theory suggesting that emotions result from physiological reactions to external events before the emotional experience occurs.

Schachter-Singer Theory

A theory of emotion that states emotions are determined by physiological arousal and the cognitive interpretation of that arousal.