The Present Value of $40,000 to Be Received in One

question 2

Multiple Choice

The present value of $40,000 to be received in one year, at 6% compounded annually, is (rounded to nearest dollar)

• A) $37,736
• B) $42,400
• C) $40,000
• D) $2,400

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Definitions:

Theory of Planned Behavior

This theory posits that human behavior is guided by three kinds of considerations: behavioral beliefs, normative beliefs, and control beliefs.

Theory of Reasoned Action

A psychological theory that explains the relationship between attitudes and behaviors within human action, suggesting that behavioral intentions are influenced by personal attitudes and the subjective norms surrounding an action.

Effort Justification

is a concept in social psychology that explains why people tend to assign greater value to outcomes they've worked hard to achieve.

Cognitive Dissonance

A state of psychological discomfort caused by holding two or more conflicting thoughts, beliefs, or attitudes.