The Present Value of $1,000 Discounted at the Rate of 5

question 57

Multiple Choice

The present value of $1,000 discounted at the rate of 5% per year, to be received at the end of 3 years is equal to

• A) $1,000/(1.03)5.
• B) $1,000/(1.05)3.
• C) $1,000 × (1.05)3.
• D) $1,000 - ($1,000) × .03 × 5.

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Definitions:

Negative Effects

Adverse or harmful outcomes resulting from a particular action or condition.

Actual Purpose

The genuine intention or primary objective behind an action, study, or project.

Deception

The act of misleading or tricking someone into believing something that is not true as part of a psychological experiment or study.

True Purpose

is the actual objective or intended goal behind an action, study, or endeavor, often as opposed to what is stated or apparent.