Compute the Present Value of the Following Single Amounts to Be

question 44

Short Answer

Compute the present value of the following single amounts to be received at the end of the specified period at the given interest rate.
$$\begin{array} { l c c c } \text { Item } & \begin{array} { c c c } \text { Invested } \\\text { Amount }\end{array} & \begin{array} { c } \text { Interest } \\\text { Rate }\end{array} & \begin{array} { c } \text { Number } \\\text { of } \\\text { Periods }\end{array} \\\hline\text { a. } & \$ 40,00 & 7 \% & 20 \\\text { b. } & \$ 20,000 & 6 \% & 25 \\\text { c. } & \$ 50,000 & 11 \% & 10\\\end{array}$$

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Definitions:

Harry Bahrick

A psychologist known for his research on memory, including the durability and retrievability of long-term memories.

Forgetting Curve

A graphical representation of the decline of memory retention over time, illustrating how information is lost when there is no attempt to retain it.

Ebbinghaus

Refers to Hermann Ebbinghaus, a German psychologist famous for his research on memory and learning, particularly known for the forgetting curve and the spacing effect.

Memory Loss

A decrease in the ability to remember information, events, or how to perform tasks, which can be temporary or permanent.