Suppose Someone Offered to Give You $1,000,000 Five Years in the Future

question 367

Multiple Choice

Suppose someone offered to give you $1,000,000 five years in the future and the anticipated interest rate is 5 percent. The present value of this offer would be worth approximately

• A) $784,000.
• B) $500,000.
• C) $1,050,000.
• D) $286,000.

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Definitions:

Personality

The combination of characteristics or qualities, including patterns of thought, feelings, and behaviors that make a person unique.

Reactive Autonomic Nervous System

Refers to the part of the autonomic nervous system that responds involuntarily to stress, causing physical reactions.

Emotional Stability

A personality trait that reflects the extent to which a person's mood and emotions are consistent and not prone to frequent fluctuations.

Self-esteem

A person's internal judgment of their own significance or merit.