Suppose You Will Receive $800 in Two Years

question 184

Multiple Choice

Suppose you will receive $800 in two years.If the interest rate is 5 percent,then the present value of this future payment is

• A)$725.62.It would be higher if the interest rate were higher.
• B)$727.28.It would be higher if the interest rate were higher.
• C)$725.62.It would be lower if the interest rate were higher.
• D)$727.28.It would be lower if the interest rate were higher.

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Definitions:

Reacting

The process of responding to stimuli or events in the environment.

Learned Helplessness

A condition resulting from the belief that one has no control over their environment, often leading to decreased motivation and depression.

Unsolvable Problems

Issues or challenges that cannot be resolved or fixed, often due to their inherent complexity or constraints.

Biological Constraints

Limitations on learning that result from biological factors rather than from experience or environment.