What Is the Present Value of a Payment of $100

question 187

Multiple Choice

What is the present value of a payment of $100 one year from today if the interest rate is 5 percent?

• A)$95.50
• B)$95.24
• C)$95.00
• D)None of the above are correct to the nearest cent.

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Definitions:

Social Cognitive Theory

A theory of learning and social behavior which asserts that new behaviors can be acquired by observing and imitating others.

Role-Playing Theory

A psychological theory proposing that individuals adapt their behaviors and attitudes to fit roles that they are expected to play in society.

Subjective Experiences

Personal, individual perceptions and feelings that are influenced by one’s own mental and emotional state, and cannot be directly measured by others.

Mental Processes

The internal, covert activities of our minds, including thinking, feeling, and problem-solving.