-Mitch Has Been Offered Three Different Contracts for a Service

question 4

Multiple Choice

-Mitch has been offered three different contracts for a service he provides. Contract 1: $9,000 received at the beginning of each year for ten years, compounded at a 6 percent annual rate.
Contract 2: $9,000 received today and $20,000 received ten years from today. The relevant interest rate is 12 percent.
Contract 3: $9,000 received at the end of Years 4, 5, and 6. The relevant annual interest rate is 10 percent.
What is the present value of Contract 2?

• A) $9,337.13
• B) $71,117.00
• C) $29,000.00
• D) $15,439.40

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Definitions:

Family History

A record of health information about a person's immediate and extended family, often used to assess genetic or hereditary health risks.

Chief Complaint

The primary symptom or concern that brings a patient to seek medical care.

Paroxysmal Nocturnal Dyspnea

Sudden episodes of shortness of breath that awaken the individual from sleep, commonly associated with heart failure.

Heart Failure

A condition in which the heart cannot pump enough blood to meet the body's needs.