Suppose You Will Receive $500 in One Year and the Risk-Free

question 62

Multiple Choice

Suppose you will receive $500 in one year and the risk-free interest rate (r_f) is 5%.The equivalent value today is closest to:

• A)$475
• B)$476
• C)$500
• D)$525

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Definitions:

Humanistic Therapy

A psychological treatment approach that emphasizes personal growth and the achievement of human potential.

Behavior Therapy

A form of psychotherapy that aims to change maladaptive behaviors through conditioning techniques.

Managed Health Care

A health care delivery system organized to manage cost, utilization, and quality.

Psychotherapy Sessions

Scheduled meetings between a therapist and a client to address psychological issues through communication and therapeutic techniques.