If the Interest Rate Is 18%, and Will Remain 18

question 15

Multiple Choice

If the interest rate is 18%, and will remain 18% forever, how much would a rational investor be willing to pay for an asset that will pay him 9,440 dollars 1 year from now, 1,392 dollars 2 years from now, and nothing at any other time?

• A)9,000 dollars
• B)171,000 dollars
• C)8,000 dollars
• D)50,000 dollars
• E)10,000 dollars

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Definitions:

Privy

Having personal knowledge of something or being privately aware of information.

Mindfulness Therapies

Therapeutic approaches that incorporate mindfulness practices, focusing on being fully present and engaged in the moment without judgment.

Integrative Psychotherapy

Integrative psychotherapy refers to an approach that combines elements from various psychological theories and techniques to tailor treatment to an individual's unique needs and circumstances.

Cognitive Behavior Therapies

A group of psychotherapeutic treatments that address dysfunctional emotions, behaviors, and thoughts through a goal-oriented, systematic process.