Your Uncle Offers You a Stream of Payments Whose Present

question 40

Multiple Choice

Your uncle offers you a stream of payments whose present value,today,is $62,000.There are 15 equal annual payments in the stream.The first payment in the stream occurs seven years from today.If the interest rate is 14%,then what is the value of each payment?

• A) $22,156.40
• B) $19,435.43
• C) $25,258.29
• D) $28,794.45
• E) $10,094.16

---

Definitions:

Verbal Message

A form of communication that involves the use of spoken or written words to convey information or express thoughts and feelings.

Organizational Communication

The process by which individuals within an organization exchange information, ideas, and meanings through various channels and media.

Vertical Communication

The flow of information between different levels within an organization, such as from management to employees or vice versa.

Grapevine

Informal communication network within an organization that is used for the sharing of rumors and unofficial information.