At Which Interest Rate Is the Present Value of $95

question 210

Multiple Choice

At which interest rate is the present value of $95.40 one year from today equal to $90 today?

• A)4 percent
• B)5 percent
• C)6 percent
• D)7 percent

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Definitions:

Feelings of Inferiority

Emotions experienced when an individual perceives themselves to be lesser or not as competent as others, often leading to motivation to overcome such feelings by striving for achievement.

Adler

Refers to Alfred Adler, a psychologist known for introducing concepts such as the inferiority complex and the importance of social context in personality development.

Genital Stage

In Freudian psychoanalysis, the final stage of psychosexual development, occurring from puberty onward, focused on mature sexual intimacy and pleasure.

Puberty

The developmental stage in humans marking the onset of adolescence, characterized by physical and hormonal changes that lead to sexual maturity.