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The Present Value of $300 Received 5 Years in the Future

question 37

Multiple Choice

The present value of $300 received 5 years in the future would be calculated as which of the following when the interest rate is 5 per cent?


Definitions:

Gratification

The state of being satisfied or receiving pleasure from something, often linked with the fulfillment of desires or needs.

Pleasure Seeking

The motivation or action taken with the primary goal of achieving personal gratification or enjoyment.

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, the superego, and reality.

Id

In psychoanalytic theory, the part of the psyche that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

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