The Present Value of $1,500 Received 8 Years in the Future

question 272

Multiple Choice

The present value of $1,500 received 8 years in the future would be calculated as which of the following when the interest rate is 3%?

• A)1,500/(1.3)⁸
• B)1,500/(1.03)⁸
• C)1,500 × 1.3 × 8
• D)8.03/1,500

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Definitions:

Parkinson Disease

A degenerative disorder of the central nervous system leading to diminished motor control and other non-motor symptoms.

Tremor

Tremor is an involuntary, rhythmic muscle contraction leading to shaking movements in one or more parts of the body, often associated with neurological conditions.

Deep Brain Stimulation

A neurosurgical procedure that implants a device to send electrical impulses to targeted areas in the brain, used to treat some neurodegenerative disorders.

Obsessive-Compulsive Disorder

A mental disorder characterized by unwanted repetitive thoughts (obsessions) and actions (compulsions).