The Present Value of an Ordinary Annuity of $350 Each

question 51

Multiple Choice

The present value of an ordinary annuity of $350 each year for five years, assuming an opportunity cost of 4 percent, is _________.

• A) $1,750
• B) $288
• C) $1,558
• D) $1,896

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Definitions:

Price Discrimination

The practice of charging different prices to different customers for the same product or service, typically without a difference in cost.

Price Discrimination

The practice of selling the same product to different buyers at different prices, often based on market power.

Dominant Firm

A company that has a large share of the market and can influence market conditions and prices.

Clayton Act

a United States antitrust law enacted in 1914, aiming to promote competition and prevent monopolies by addressing specific practices not sufficiently covered by the Sherman Act.