The Present Value (PV)of Receiving $1000 Per Year with Certainty

question 45

Multiple Choice

The present value (PV) of receiving $1000 per year with certainty at the end of the next three years is closest to:

• A)$2737
• B)$2723
• C)$2733
• D)$2744

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Definitions:

Exploring Alternatives

The process of reviewing and considering different options or courses of action before making a decision.

Idealization

The process of viewing or representing an individual, object, or idea as perfect or better than in reality.

Compensation

Payment or remuneration given for services rendered or to compensate for injuries or losses.

Denial

A defense mechanism in which a person refuses to accept reality or facts, often as a way to protect themselves from dealing with uncomfortable emotions or situations.