What Is the Present Value of a Perpetuity Consisting of Payments

question 20

Multiple Choice

What is the present value of a perpetuity consisting of payments of $500 with an interest rate of 10% p.a.?

• A)$5,000.00
• B)$4,000.00
• C)$3,000.00
• D)$2,000.00

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Definitions:

Babbling

An infant’s repetition of syllables such as “ba-ba-ba-ba” and “ma-ma-ma,” which begins at about 6 months of age.

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The first language a person learns from birth, often used within the family and community setting.

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The process through which individuals acquire the ability to comprehend and communicate in a language.

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Real-time communication or engagement between two or more individuals, often implying face-to-face or digital interaction.