Drew Receives an Inheritance That Pays Him $50,000 Every Three

question 47

Multiple Choice

Drew receives an inheritance that pays him $50,000 every three months for the next two years. Which of the following is closest to the present value (PV) of this inheritance if the interest rate is 8.5% (EAR) ?

• A) $364,309
• B) $365,322
• C) $400,000
• D) $354,223

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Definitions:

Mass Production Technologies

Techniques and tools used in the production of large quantities of standardized products, typically utilizing assembly lines and automation to achieve high efficiency and lower costs.

Human Resource Management

The strategic approach to the effective management of people in an organization, focusing on maximizing employee performance.

Factory Jobs

Positions or employment opportunities within manufacturing plants or production facilities, often involving manual labor or operating machinery.

Virtual Workforce

A group of employees who work remotely from various locations, often utilizing digital communication technologies to perform their duties.