A Perpetuity Has a PV of $32,000

question 10

Multiple Choice

A perpetuity has a PV of $32,000. If the interest rate is 10%, how much will the perpetuity pay every year?

• A) $2909
• B) $3200
• C) $3100
• D) $3520

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Definitions:

Estivation

A period of dormancy or inactivity in some animals during hot or dry periods.

Acclimatization

The process by which an organism adjusts to gradual changes in its environment, improving its performance over time.

Migration

(1) The periodic or seasonal movement of an organism (individual or population) from one place to another, usually over a long distance.

Ectotherms

Organisms that regulate their body temperature through external sources, such as sunlight or a heated rock surface, rather than internal metabolic processes.