A Bank Lends Some Money to a Business

question 96

Multiple Choice

A bank lends some money to a business. The business will pay the bank a single payment of $180 000 in 10 years' time. How much greater is the present value (PV) of this payment if the interest rate is 9% rather than 8%?

• A)$35 892
• B)$76 033
• C)$83 374
• D)$7 341

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Definitions:

Parsons's Argument

A theoretical perspective proposed by sociologist Talcott Parsons, which emphasizes the role of social institutions in maintaining societal stability and cohesion through a shared value system.

Foraging Societies

Societies that rely on gathering, hunting, and fishing for sustenance rather than agricultural or industrial means of food production.

Socialization

The lifelong process through which individuals learn and internalize the norms, values, and behaviors appropriate to their society, shaping their personality and social skills.

At Least Two Wives

Pertains to the practice of polygamy, specifically polygyny, where a man is married to two or more wives simultaneously.