What Is the Value in Year 10 of a $1,000

question 8

Multiple Choice

What is the value in year 10 of a $1,000 cash flow made in year 5 if interest rates are 9 percent in years 6 and 7, and increase to 13 percent in the remaining years?

• A) $1,538.62
• B) $1,691.47
• C) $1,714.31
• D) $1,799.42

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Definitions:

Different Culture

Refers to the variety of cultural or ethnic groups within a society and the distinctive practices, beliefs, and traditions they embody.

Cognitive Dissonance Theory

A theory suggesting that we have an inner drive to hold all our attitudes and beliefs in harmony and avoid disharmony (or dissonance).

Festinger

Refers to Leon Festinger, a social psychologist best known for his theory of cognitive dissonance, which describes the feelings of discomfort resulting from holding two conflicting beliefs.

Face-to-Face Interactions

Direct communication or exchange between people who are physically present in the same location.