If You Will Receive $3, 000 Three Years from Today

question 26

Multiple Choice

If you will receive $3, 000 three years from today and the discount rate is 7 percent, the present value of the $3, 000 is

• A)$2, 779
• B)$3, 770
• C)$1, 658
• D)$1, 962
• E)$2, 449

---

Definitions:

Legal Institutions

Structures and mechanisms of social order and cooperation governing the behavior of a set of individuals within a given human community, focusing on laws and regulations.

Same Rights

the principle that all individuals should have equal legal entitlements and freedoms without discrimination.

Cognitive Separation

The mental process of distinguishing between different concepts, objects, or individuals, aiding in understanding and decision-making.

Individualistic

Emphasizes the importance of personal independence and the self over group identity, valuing personal achievements and autonomy.