Using the Following Partial Table of Present Value of $1

question 52

Multiple Choice

Using the following partial table of present value of $1 at compound interest, determine the present value of $20,000 to be received four years hence, with earnings at the rate of 10% a year:

• A) $13,660
• B) $12,720
• C) $15,840
• D) $10,400

---

Definitions:

Confound

A variable that mistakenly appears to cause the observed effect but in reality is associated with both the supposed cause and effect, thus misleading the interpretation.

Temporal Order

The sequence in which events occur in time.

Random Error

Variability in measurement or data that arises by chance and cannot be attributed to a specific cause, affecting the accuracy of results.

Social Psychology

The scientific study of how individuals think, influence, and relate to each other within a societal context.