If the Interest Rate Is 10 Percent,the Present Value of an Annual

question 105

Multiple Choice

If the interest rate is 10 percent,the present value of an annual payment of $100,000 to be received indefinitely is _____

• A)$1,000,000.
• B)$1,246,296.
• C)$2,000,000.
• D)$976,463.
• E)infinite.

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Definitions:

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing behaviors, thoughts, and emotions.

Reciprocal Determinism

A concept in psychology that suggests individual behavior, environment, and cognition are interrelated and influence each other.

Trait

A characteristic or quality of an organism, often inherited, that can be physical like height or behavioral like shyness.

Psychic Energy

A concept in psychoanalytic theory referring to the force or drive behind human behavior and mental processes.