What Is the Present Value of $500 Received at the End

question 37

Multiple Choice

What is the present value of $500 received at the end of each of the next five years worth to you today at the appropriate discount rate of 6 percent?

• A)$1,105
• B)$1,850
• C)$2,106
• D)$2,778

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Definitions:

Inheritance of Power

refers to the transfer of authority, control, or influence over others from one generation to another within families, dynasties, or organizations.

Rational Thoughts

The process of thinking clearly, logically, and without emotional bias.

Traditional Authority

A type of leadership in which the authority of an organization or a ruling regime is largely tied to tradition or custom.

Legal

Pertaining to the system of rules that a particular country or community recognizes as regulating the actions of its members and may enforce by the imposition of penalties.