A Business Promises to Pay the Investor of $6000 Today

question 17

Multiple Choice

A business promises to pay the investor of $6000 today for a payment of $1500 in one year's time, $3000 in two years' time, and $3000 in three years' time. What is the present value of this business opportunity if the interest rate is 6% per year?

• A) $603.94
• B) $301.97
• C) $724.73
• D) $966.30

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Definitions:

Freud

Also known as the father of psychoanalysis, Freud developed theories on the unconscious mind, mechanisms of repression, and the importance of dreams.

Latency Period

In psychoanalytic theory, a stage of psychosexual development in childhood where sexual urges are inactive or dormant.

Birthday Party

A celebration of the anniversary of someone's birth, often involving social gatherings and festivities.

Mostly Girls

Typically refers to situations, groups, or contexts where the majority of individuals are female.