Consider a Three-Year Fixed-Payment Security That Has a Present Value

question 41

Multiple Choice

Consider a three-year fixed-payment security that has a present value of $1,000.If the annual rate of discount is 7 percent, the payment made at the end of each year is

• A)$70.00.
• B)$107.00.
• C)$142.86.
• D)$381.05.

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Definitions:

Functionalism

An early school of psychology that was concerned with how humans and animals use mental processes in adapting to their environment.

Charles Darwin

A British naturalist best known for his contributions to the science of evolution, particularly the theory of natural selection.

Structuralism

The first formal school of thought in psychology, aimed at analyzing the basic elements, or structure, of conscious mental experience.

Conscious Mental Experience

The subjective experience of being aware of one's own thoughts, feelings, and sensations.