The Present Value of a Future Payment to Be Received

question 73

Multiple Choice

The present value of a future payment to be received in three years is $1,000.If the interest rate is 5%,what is the amount that will be paid in three years?

• A)$1,150.00
• B)$1,157.63
• C)$1,215.51
• D)$1,250.00

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Definitions:

Semantic Memories

Memories of meanings, understandings, and other concept-based knowledge unrelated to specific experiences.

Episodic Memories

A type of long-term memory that involves the recollection of specific events, situations, and experiences, including the contexts and emotions associated with them.

Temporal Lobes

Regions of the cerebral cortex located beneath the temples, involved in processing auditory information and encoding memory.

Hippocampus

A major component of the brain located in the temporal lobe, critical for the storage of new memories and is associated with learning and emotions.