What Is the Present Value (PV) of an Investment That

question 81

Multiple Choice

What is the present value (PV) of an investment that pays $100,000 every year for four years if the interest rate is 5% APR, compounded quarterly?

• A) $353,818
• B) $389,200
• C) $424,581
• D) $459,963

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Definitions:

Psychological Test

a standardized measure used to evaluate an individual's mental and emotional functioning from various aspects.

Reliability

The degree to which an assessment tool produces stable and consistent results over multiple administrations under similar conditions.

Flynn Effect

The observed rise over time in standardized intelligence test scores, attributed to various factors including better nutrition and education.

WISC-IV

The Wechsler Intelligence Scale for Children, Fourth Edition, a tool used to measure a child's intellectual abilities and cognitive strength and weaknesses.