To Find the Present Value of $1000 Discounted for 20

question 46

Multiple Choice

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

• 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:

Frontal Lobe

The part of the brain located at the front of the skull, responsible for executive functions such as decision making, problem-solving, and controlling behavior.

Mental Speed Tasks

Cognitive exercises or tests designed to measure the quickness of an individual's thought processes, decision-making, and reaction times.

Simple Reaction Time

The time taken for an individual to respond to a single stimulus, such as light or sound, with a predetermined response.

Choice Reaction Time

The measurement of time elapsed between the presentation of a stimulus and the initiation of a response, where multiple stimuli and possible responses exist.