What Annual Payment Must You Receive in Order to Earn

question 130

Multiple Choice

What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has a cost of $1,250?

• A) $77.19
• B) $81.25
• C) $85.31
• D) $89.58
• E) $94.06

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Definitions:

High Earnings

describe a significant amount of income or profit, typically above the average or expected in a certain context or profession.

Dropout Rates

The percentage of individuals who fail to complete a particular educational level or program.

Ethnic Group

A community or population made up of people who share a common cultural background, heritage, language, or religion, distinguishing them from other groups.

Adolescents

Adolescents refer to young people in the transitional stage from childhood to adulthood, typically ranging from ages 10 to 19.