Which of the Following Decisions Would Involve the Use of the Future

question 43

Multiple Choice

Which of the following decisions would involve the use of the future value of $1?

• A) Your brother buys your car and offers to pay you $500 now or $1,500 in two years.
• B) You win a lawsuit and are offered a lump-sum payment today of $100,000 or $15,000 a year for 20 years.
• C) Your father and mother wish to deposit enough money on the date of your high school graduation to enable you to take a $7,000 cruise when you graduate from college in 4 years.
• D) You want to have $1,000,000 in order to retire at age 55, but need to know how much you will need to deposit each year from now until your 55th birthday.

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Definitions:

Involuntarily Committed

The process of admitting an individual to a psychiatric facility against their will for assessment or treatment based on criteria of danger to themselves or others.

Mental Health Professional

A trained expert who offers services for the purpose of improving an individual's mental health or to treat mental illness.

Clear and Convincing Proof

Clear and Convincing Proof is a standard of evidence requiring a high level of certainty to establish the truthfulness of a fact in legal proceedings, above a preponderance of evidence but below beyond a reasonable doubt.

Robinson V. California

A landmark court case in which the U.S. Supreme Court ruled that it is unconstitutional to criminalize being addicted to narcotics.