Examlex
You have a choice among three options. Option 1: receive $900 immediately. Option 2: receive $1,200 one year from now. Option 3: receive $2,000 five years from now. The interest rate is 15 percent. Rank these three options from highest present value to lowest present value.
Constructive Trust
A legal remedy imposed to address unjust enrichment, where property is held by someone who should not profit from it.
Incorporated by Reference
A method in legal documents where the contents of an external document are made a part of the main document by mentioning it explicitly.
Testator
An individual who has made a will or testament to dictate the distribution of their assets after their death.
Testamentary Capacity
The legal and mental ability of an individual to make or alter a valid will, including understanding the nature of the document and the assets.
Q66: Risk aversion simply means that people dislike
Q147: Refer to Table 15-2.How many people were
Q151: What happens to desired investment spending if
Q231: What does the maturity of a bond
Q298: What is the present value of a
Q305: Suppose there is a shortage in the
Q308: If people expect future earnings of Galt
Q322: At which interest rate is the present
Q399: From the standpoint of the economy as
Q426: You are a financial advisor and a