What Is the Present Value of $25,250,300 to Be Received

question 16

Multiple Choice

What is the present value of $25,250,300 to be received 73 years from now if the interest rate is 22.5 percent?

• A)$10,454,550.25
• B)$9.30
• C)$12,566.60
• D)$8,987,000.45
• E)$8,500,000.25

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Definitions:

Random

Lacking any pattern, plan, or purpose; occurring by chance.

Major Earthquake

A major earthquake is a natural disaster characterized by a significant seismic event with a magnitude generally 7.0 or higher on the Richter scale, often causing widespread damage.

Expected Number

In statistics, refers to the predicted count of occurrences in an experiment or survey under the assumption of a particular model or hypothesis.

Probability

The measure of the likelihood that a given event will occur, expressed as a number between 0 and 1.