With an Interest Rate of 10 Percent,the Present Value of a Security

question 58

Multiple Choice

With an interest rate of 10 percent,the present value of a security that pays $1,100 next year and $1,460 four years from now is approximately

• A) $1,000.
• B) $2,000.
• C) $2,560.
• D) $3,000.

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Definitions:

Herbert Spencer

A British philosopher, biologist, anthropologist, and sociologist known for his contributions to Social Darwinism and the concept of survival of the fittest.

Verstehen

A German term used in sociology that refers to the understanding or interpretation of the subjective meaning that individuals attach to their actions and interactions.

Structural Analysis

A method in engineering and architecture used to determine the effects of loads on physical structures and their components.

Functionalism

A theoretical framework in social sciences that views society as a complex system whose parts work together to promote solidarity and stability.