$100 Is Received at the Beginning of Year 1, $200

question 51

Multiple Choice

$100 is received at the beginning of year 1, $200 is received at the beginning of year 2, and $300 is received at the beginning of year 3.If these cash flows are deposited at 12 percent, their combined future value at the end of year 3 is ________.

• A)$1,536.
• B)$672.
• C)$727.
• D)$1,245.

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Definitions:

Frustration-Aggression Principle

A psychological theory suggesting that aggression is caused by blocking, or frustrating, a person's efforts to achieve a goal.

Mere Exposure Effect

The phenomenon by which people tend to develop a preference for things merely because they are familiar with them.

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, also known as the "knew-it-all-along" effect.

Other-Race Effect

This phenomenon describes the tendency to more easily recognize faces of the race that one is most familiar with, which is often their own race.