LeAnn Wishes to Know How Much She Should Set Aside

question 85

Multiple Choice

LeAnn wishes to know how much she should set aside now at 7% interest in order to accumulate a sum of $5,000 in four years. She should use a table for the:

• A)Present value of 1.
• B)Future value of 1.
• C)Present value of an ordinary annuity of 1.
• D)Future value of an annuity due of 1.

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Definitions:

Consciousness Levels

Refers to the varying degrees of awareness individuals have of themselves and the environment around them.

Ego

In Freud’s theory, the logical, rational, largely conscious system of personality, which operates according to the reality principle.

Psychic Energy

A concept in psychoanalytic theory referring to the force or drive within individuals that motivates them to seek pleasure and avoid pain.

Id

In psychoanalytic theory, the part of the mind in which innate instinctive impulses and primary processes are manifest.