If the Present Value of $110 to Be Received One

question 85

Multiple Choice

If the present value of $110 to be received one year from now is $100, what will $100 be worth two years from now?

• A) $110
• B) $121
• C) $100
• D) can't say since we don't know what the interest rate is

---

Definitions:

Forensic Psychiatric

A branch of psychiatry that intersects with the law, involving the assessment and treatment of individuals who are involved with the legal system.

Peer-reviewed

Describes a process where scholarly work or research is evaluated and critiqued by experts in the same field before publication.

Insanity Defense

A legal defense used in criminal trials asserting that the defendant was unable to understand the nature or wrongfulness of their actions due to severe mental disease or defect at the time of the crime.

Auditory Hallucinations

A form of hallucination involving hearing sounds, often voices, that aren't actually present.