If You Want to Know the Present Value of $5,000

question 243

Multiple Choice

If you want to know the present value of $5,000 received in one year,and the interest rate is 2 percent,what formula can you use?

• A)Present value equals $5,000 times 0.02.
• B)Present value equals $5,000 divided by 1.02
• C)Present value equals 1.02 divided by $5,000.
• D)Present value equals $5,000 times 1.02.

Understand the effects of memory manipulation techniques such as hypnosis.

Understand the concept and characteristics of flashbulb memory, including examples and critical views.

Analyze factors that can undermine the reliability of eyewitness testimony in legal contexts.

Comprehend the nature and functioning of sensory memory with an emphasis on seminal research findings.

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits that could have been received but were sacrificed in the pursuit of another option.

Debt-Equity Ratio

The quotient of total liabilities and shareholders' equity, representing a company's leverage financially.

Dividend Growth Model

A method for valuing a stock by assuming constant dividend growth and using future dividends to forecast stock price.