The Present Value of $30,000 to Be Received in Two

question 8

Multiple Choice

The present value of $30,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar)

• A) $23,916
• B) $37,632
• C) $23,700
• D) $30,000

Comprehend various financial analysis techniques including horizontal, vertical, and ratio analysis.

Learn how to calculate the rate of return on common stockholders' equity.

Understand the components and interpretation of debt management ratios.

Calculate and analyze the times interest earned ratio.

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Definitions:

Diffusion of Responsibility

A sociopsychological phenomenon whereby a person is less likely to take responsibility for action or inaction when others are present.

Just-World Hypothesis

The belief that the world is fundamentally fair, leading people to rationalize an otherwise inexplicable injustice as deserved by the victim.

Deindividuation

A psychological state characterized by diminished self-consciousness, reduced concern over social evaluation, and weakened restraints against prohibited forms of behavior, often occurring in group settings.

Deindividuated

A psychological state where an individual loses self-awareness and feels less responsible for their actions, often occurring in group settings.