If You Are Receiving $2, 000 Per Year Forever, the Present

question 140

Multiple Choice

If you are receiving $2, 000 per year forever, the present value of that income stream when the prevailing interest rate is 7 percent is equal to

• A)$20, 000
• B)$62, 472
• C)$100, 087
• D)$27, 000
• E)$28, 571

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Definitions:

Taft-Hartley Act

A 1947 federal law in the United States that restricts the activities and power of labor unions.

Unions

Organizations formed by workers from related fields that work together to protect their collective interests, such as better wages, working conditions, and benefits.

Secondary Strikes

Secondary strikes involve workers going on strike in solidarity with workers from a different company or industry, aiming to support another group's strike or labour dispute.

Globalization

The process of increased interconnectedness among countries, primarily in economics, politics, and culture, due to advances in communication and transportation.