To Find the Present Value of $1000 Discounted for 20

question 52

Multiple Choice

To find the present value of $1000 discounted for 20 years at 8%, when using a financial calculator, the correct entry is [blank].

• A)N=20, i=.08, PMT=0, FV=1000, solve for PV
• B)N=20, i=8, PMT=0, FV=1000, solve for PMT
• C)N=20, i=.08, PMT=0, PV=1000, solve for FV
• D)N=20, i=8, PMT=0, FV=1000, solve for PV

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Definitions:

Milgram's Study

An influential experiment conducted by Stanley Milgram in the 1960s to investigate obedience to authority, demonstrating that people are willing to administer what they believe are painful electric shocks to another person when instructed by an authority figure.

Legitimate Power

A form of authority that is recognized and accepted by others due to the position or role held by an individual within an organization or society.

Open Social Influence

This involves the impact that the visible actions, preferences, or opinions of others have on an individual's behavior, often leading to conformity or change in beliefs.

Two-sided Messages

Messages that present both the positive and negative aspects of an argument to persuade an audience more effectively.