You Own 100 Shares of Stock That Are Earning $2

question 140

Multiple Choice

You own 100 shares of stock that are earning $2 per share per year. According to market analysts, the stock is expected to continue to earn $2 long into the future. Using the annuity rule, and assuming an interest rate of 6.5 percent, it follows that the present value of these 100 shares is:

• A)$30.77.
• B)$307.79.
• C)$3,076.92.
• D)$30,076.92.

---

Definitions:

Mechanical Devices

Tools or machines made up of moving parts, designed to perform a specific mechanical function.

Cough

A common reflex action aimed at clearing the throat or respiratory passages of irritants, mucus, or foreign particles.

Sentence

A set of words that is complete in itself, typically containing a subject and predicate, conveying a statement, question, exclamation, or command.

Interpret

To explain the meaning of information, words, or actions, often involving a subjective understanding.