The Difference in Present Value Between a Perpetuity That Promised

question 59

Multiple Choice

The difference in present value between a perpetuity that promised $1 per year starting today and one that promised $1 per year starting next year is:

• A)$1/(1 + i).
• B)$1.
• C)0.
• D)$i/(1 + i).

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Definitions:

Heterozygous

Having two different alleles of a particular gene, one inherited from each parent.

Sex Chromosomes

Chromosomes involved in determining the sex of an organism, with human males typically having one X and one Y chromosome, and females having two X chromosomes.

X Chromosome

One of the two sex chromosomes, which plays a crucial role in determining genetic sex and can carry genes affecting various traits and conditions.

Y Chromosome

A sex chromosome found in males that is paired with an X chromosome and determines male biological characteristics.