The Present Value of a $100 Per Year Perpetuity at 10

question 33

Multiple Choice

The present value of a $100 per year perpetuity at 10 percent per year interest rate is $1,000. What would be the present value of this perpetuity if the payments were compounded continuously?

• A)$1,000.00
• B)$1,049.21
• C)$1,024.40
• D)$986.14

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Definitions:

Ethical Principle

A fundamental guideline or value system that directs moral decisions and actions.

Autonomy

The right or condition of self-government, often relating to personal decision-making, independence, and the ability to act according to one's own principles.

Self-Mutilating

The act of deliberately harming or injuring oneself without intent of suicide, often as a way to deal with emotional distress.

Right to Privacy

The entitled freedom of individuals to keep their personal affairs confidential and to make decisions about their personal life without intrusion.