Marshall Has Received an Inheritance and Wants to Invest a Sum

question 7

Multiple Choice

Marshall has received an inheritance and wants to invest a sum of money today that will yield $5,000 at the end of each of the next 10 years. Assuming he can earn an interest rate of 5% compounded annually, how much of his inheritance must he invest today? (^{PV of $1}, ^{FV of $1}, ^{PVA of $1}, and ^{FVA of $1}) (Use appropriate factor(s) from the tables provided.)

• A) $45,125.00
• B) $100,000.00
• C) $47,500.00
• D) $38,608.50
• E) $50,000.00

---

Definitions:

Neuropsychology

The study of the relationship between brain function and behavior, including the effects of brain injuries and diseases.

Trait Theory

A psychological approach focused on the quantification and analysis of personality traits or characteristics that are consistent over time and situation.

Positive Reinforcement

Involves the addition of a rewarding stimulus following a desired behavior, increasing the likelihood of that behavior being repeated.

Negative Punishment

A behavior modification technique where a desirable stimulus is removed after a particular behavior, with the aim of decreasing that behavior.