Salvatore Has the Opportunity to Invest in a Scheme Which

question 52

Multiple Choice

Salvatore has the opportunity to invest in a scheme which will pay $5000 at the end of each of the next 5 years. He must invest $10,000 at the start of the first year and an additional $10,000 at the end of the first year. What is the present value of this investment if the interest rate is 4%?

• A) $1248.56
• B) -$1410.67
• C) -$112.23
• D) $2643.73

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Definitions:

Skip-Generation

A household where a child or children live with their grandparents without a parent present.

Sandwich Generation

The middle generation in a multigenerational household, which often struggles balancing caring for aging parents while caring for children.

Boomerang Generation

Term used to describe those young adults who return to their parental home after leaving for education, work, or a relationship.

Blended Family

A family unit composed of a couple and their children from this and all previous relationships, creating a complex network of relationships.