What Is the Present Value of a $500 Payment in One

question 154

Multiple Choice

What is the present value of a $500 payment in one year when the discount rate is 5 percent?

• A) $475.00
• B) $476.19
• C) $500.00
• D) $525.00

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Definitions:

Pavlov

Refers to Ivan Pavlov, a Russian physiologist known for his research in classical conditioning, particularly the conditioned reflex experiment with dogs.

Potential Behavior

Behavior that an individual is capable of performing, which may be realized under certain conditions or when triggered by specific stimuli.

Learning

The acquisition of knowledge or skills through experience, study, or being taught.

Directly Observed

A method or instance where actions or behaviors are watched and recorded in real time.