Mike Carlson Will Receive $10,000 a Year from the End

question 75

Multiple Choice

Mike Carlson will receive $10,000 a year from the end of the third year to the end of the 12^th year (10 payments) .The discount rate is 10%.The present value today of this deferred annuity is:

• A) $61,446
• B) $55,860
• C) $46,165
• D) $50,782

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Definitions:

Nicotine

A stimulant and potent parasympathomimetic alkaloid that is found in the nightshade family of plants and is widely used in cigarettes and other forms of tobacco.

Pulse Rates

A measure of the number of heartbeats per unit of time, usually expressed in beats per minute.

Exercise

Physical activity that is planned, structured, and repetitive, intended to improve or maintain physical fitness.

Smoking

The act of inhaling and exhaling the smoke of burning tobacco in cigars, cigarettes, or pipes.