Thorton Will Receive an Inheritance of £500,000 Three Years from Now.Thorton's

question 41

Multiple Choice

Thorton will receive an inheritance of £500,000 three years from now.Thorton's discount rate is 10% interest rate compounded semiannually.Which of the following values is closest to the amount that Thorton should accept today for the right to his inheritance?

• A)£373,108.
• B)£375,657.
• C)£665,500.
• D)£670,048.
• E)None of the above is within £10 of the correct answer.

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Definitions:

Hofstede's Dimensions

A framework for cross-cultural communication developed by Geert Hofstede, which describes the effects of a society's culture on the values of its members and how these values relate to behavior.

Primary Appraisal

The initial evaluation process where the individual assesses the significance of a stressor as being positive, neutral, or negative.

Potential Stressor

An event, situation, or stimulus that has the capacity to induce stress, depending on the individual's perception, experiences, and coping mechanisms.

Abstract Painting

A style of painting that does not attempt to represent external reality, but seeks to achieve its effect through shapes, colors, and textures.