The Present Value of $1000 to Be Received at the End

question 62

Multiple Choice

The present value of $1000 to be received at the end of five years, if the discount rate is 10%, is [blank].

• A)$621
• B)$784
• C)$614
• D)$500

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Definitions:

Olds and Milner

Researchers known for their discovery of the brain's reward system through experiments involving electrical stimulation of the brains of rats.

Rats

Rodents commonly used in psychological and medical research due to their physiological and genetic similarities to humans and their predictable behaviors.

Drives

Internal states that motivate the organism to perform actions necessary for survival, such as hunger or thirst.

Contiguity

In psychology, contiguity is the principle that ideas, memories, and experiences are linked when one is frequently experienced with the other, leading to easier recall or association.