Compute the Present Value of $4,000 Paid in Five Years

question 134

Multiple Choice

Compute the present value of $4,000 paid in five years using the following discount rates: 10 percent in year 1, 2 percent in year 2, 12 percent in year 3, and 9 percent in years 4 and 5.

• A) $2,679.15
• B) $2,206.81
• C) $2,317.03
• D) $2,362.19

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Definitions:

Professional Judgment

The ability to make decisions and draw conclusions in one’s professional field based on expertise, experience, and ethics.

Exploiting the Client

Acting unethically by taking unfair advantage of a client for personal, financial, or other gains, contradicting professional ethical standards.

Dual Relationship

Ethical dilemma arising when a professional holds more than one role with a client, potentially compromising objectivity and confidentiality.

Family History

A record of a person's background including health, genetic conditions, and relationships within the family.