The Present Value of $1,000 Received at the End of Year

question 154

Multiple Choice

The present value of $1,000 received at the end of year 1, $1,200 received at the end of year 2, and $1,300 received at the end of year 3, assuming an opportunity cost of 7 percent, is ________.

• A) $2,500
• B) $3,044
• C) $6,516
• D) $2,856

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Definitions:

Stress-Related Illness

Health problems, either physical or psychological, that are directly or indirectly caused by chronic stress.

Neuroticism

A personality trait characterized by anxiety, moodiness, worry, envy, and jealousy, considered one of the Big Five personality traits.

Hardiness

A personality trait characterized by resilience and the ability to endure difficult conditions, often associated with a lower perception of stress and more effective coping strategies.

Indirect Health-Related Behaviors

Actions that may not directly aim to improve health but have secondary effects that can influence health outcomes, such as socializing or sleeping habits.