Suppose the Present Value of a 2-Year Ordinary Annuity Is

question 30

Multiple Choice

Suppose the present value of a 2-year ordinary annuity is $100.If the discount rate is 10%,what must be the annual cash flow?

• A) $65.45
• B) $82.64
• C) $57.62
• D) $53.78
• E) $79.22

---

Definitions:

Behavioral Theories

Refer to a range of theories in psychology that emphasize the importance of observable behaviors and the ways in which they are learned.

Anal-retentive Trait

A personality characteristic associated with those who are excessively orderly, neat, rigid, and controlling, stemming from Freudian psychoanalytic theory regarding psychosexual development stages.

Perfectionism

A characteristic of an individual marked by the pursuit of perfection and the establishment of extremely high standards for performance.

Gullibility

A tendency to be easily persuaded or convinced to believe something, often without critical analysis or sufficient evidence.