What Is the Present Value of a Payment of $1,000

question 248

Multiple Choice

What is the present value of a payment of $1,000 two years from now if the interest rate is 6%?

• A) $2,000/1.06
• B) $1000/1.06)2
• C) $1000/1 + 0.062)
• D) None of the above are correct.

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Definitions:

Power Distance

A cultural dimension that describes the extent to which individuals in a society accept and expect that power is distributed unequally.

Culture

Culture represents the shared values, beliefs, norms, and practices that shape the social behavior and interactions within a group, organization, or society.

Unequal Distribution

Refers to a scenario where resources, opportunities, or outcomes are not shared equally among all groups or individuals within a specific context.

Long-Term Orientation

A cultural dimension that reflects a society's attitude towards time, emphasizing the importance of future rewards over immediate results.