Determine the Difference Between the Present Value of a $1,000

question 55

Multiple Choice

Determine the difference between the present value of a $1,000 twenty-year annuity earning 8% interest compounded annually versus a $1,000 twenty-year growing annuity earning 8% interest compounded annually and having a 2% annuity growth rate.

• A) $1,535.06
• B) $1,935.06
• C) $2,535.06
• D) $2,935.06
• E) $3,535.06

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Definitions:

Postconventional Morality

Kohlberg’s third level of moral reasoning in which people use moral principles that are seen as broader than those of any particular society.

Preconventional Morality

Kohlberg’s first level of moral reasoning in which the concrete interests of the individual are considered in terms of rewards and punishments.

Conventional Morality

Kohlberg’s second level of moral reasoning in which people approach moral problems as members of society.

Moral Development

The changes in people’s sense of justice and of what is right and wrong, and in their behavior related to moral issues.