What Is the Present Value (PV) of $100,000 Received Six

question 58

Multiple Choice

What is the present value (PV) of $100,000 received six years from now, assuming the interest rate is 8% per year?

• A) $60,000.00
• B) $63,016.96
• C) $78,771.20
• D) $110,279.68

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Definitions:

Superego

The Freudian structure of personality that serves as the harsh internal judge of the individual’s behavior; what is often referred to as conscience.

Cookie Monster

A character from Sesame Street known for his voracious appetite for cookies and distinctive blue fur.

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology.

Pleasure

A feeling of happiness, satisfaction, or enjoyment derived from an experience.