Samuel Just Inherited an Annuity

question 53

Multiple Choice

Samuel just inherited an annuity. He will receive six equal annual payments of $18,000, beginning today. Assuming a 10% interest rate compounded annually, the present value today of all receipts is

• A) $64,886.
• B) $78,395.
• C) $86,234.
• D) $75,058.

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Definitions:

Association

The linkage of two events, usually as the result of a specific experience.

Positive Explanatory Styles

A cognitive approach characterized by attributing positive events to stable, global, and internal factors, and negative events to unstable, specific, and external factors.

Hopelessness

The belief that negative events are inevitable and a sense of self-deficiency or unworthiness.

Expectations

Mental representations of future events, which can influence perception, cognition, and behavior in anticipation of those events.