An Investment Pays You $20 000 at the End of This

question 4

Multiple Choice

An investment pays you $20 000 at the end of this year, and $10 000 at the end of each of the four following years. What is the present value (PV) of this investment, given that the interest rate is 4% per year?

• A)$54 134
• B)$42 150
• C)$58 614
• D)$45 913

---

Definitions:

Denial

A psychological defense mechanism where a person refuses to accept the reality of a factual or emotional truth.

Coercive Power

A form of power that is based on the ability to deliver punishments or impose penalties for noncompliance, often used to control or influence others' actions.

Compliance

The act of adhering to rules, standards, or laws.

Punishment

The imposition of a penalty as a consequence of an undesirable behavior, aimed at reducing or eliminating that behavior.