Drew Receives an Inheritance That Pays Him $50 000 Every

question 17

Multiple Choice

Drew receives an inheritance that pays him $50 000 every three months for the next two years. Which of the following is closest to the present value (PV) of this inheritance if the interest rate is 8.5% (EAR) ?

• A)$400 000
• B)$365 322
• C)$364 309
• D)$354 223

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Definitions:

Experiment

A method of research in the sciences or social sciences in which variables are manipulated to observe the effects on some behavior or mental process.

Corpus Callosum

A broad band of nerve fibers joining the two hemispheres of the brain.

Divided Visual Field

A technique used in psychology to present different stimuli simultaneously to each half of the visual field to study brain function and hemispheric specialization.

Neuropsychologist

A professional specializing in understanding brain-behavior relationships, often assessing and treating cognitive and behavioral effects of neurological disorders.