You Will Receive Annual Payments of $800 at the End

question 33

Multiple Choice

You will receive annual payments of $800 at the end of each year for 12 years.The first payment will be received in Year 3.What is the present value of these payments if the discount rate is 7 percent?

• A)$5,465.20
• B)$6,018.52
• C)$6,299.80
• D)$5,549.96
• E)$6,856.60

Recognize the importance and requirements of published data on mutual fund returns.

Comprehend and compare the historical volatility and returns of different asset classes.

Calculate effective annual rates of return on investments such as Treasury bills.

Identify and compute various measures of investment performance, including Holding Period Return (HPR).

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Definitions:

Guidelines

Instructions or principles that direct an individual's actions or the operations of an organization.

Accused

A person or group that is charged with a crime or accused of wrongdoing.

Unreasonable Claim

A statement or assertion that lacks logic, evidence, or is beyond what is considered fair or sensible.

Rejecting

The act of refusing to accept, submit to, believe, or make use of something.