The Present Value of $10,000 Discounted at 5% Per Year

question 92

Multiple Choice

The present value of $10,000 discounted at 5% per year and received at the end of 5 years is

• A) $10,000/1.25.
• B) $10,000(1.05)5.
• C) $10,000/(1.05)5.
• D) $10,000 (1.05)1/5.

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Definitions:

Vertical Differentiation

Refers to the process of ranking various products, services, or individuals based on quality or prestige rather than quantity or access.

Structural Functionalism

A sociological perspective that views society as a complex system whose parts work together to promote solidarity and stability.

Functional Differentiation

A concept in sociology and systems theory that describes the process by which social systems evolve by differentiating specific subsystems to handle specific functions or tasks.

Inside Elements

Fundamental or essential components that exist or operate within a particular system or context.