What Is the Present Value of $27 Received at the End

question 29

Multiple Choice

What is the present value of $27 received at the end of each year for five years? Assume a discount rate of 9%. The first payment will be received one year from today (round to the nearest $1) .

• A) $42
• B) $114
• C) $88
• D) $105

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Definitions:

Expectancy

A person's belief about the likelihood of achieving success in a specific situation, often influencing motivation and behavior.

Instrumentality

The belief or expectation that performing a certain behavior will lead to a particular outcome or reward.

Psychological Needs

Fundamental emotional or cognitive requirements for well-being and effective functioning, such as autonomy, competence, and relatedness.

Autonomous Motivation

The drive to perform an activity for its inherent satisfaction or enjoyment, rather than external pressures or rewards.