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:

Japan

An island nation in East Asia, known for its rich culture, technological advancements, and historic sites.

Big Five

A model in psychology that outlines five broad dimensions of personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Openness

Willingness to try new things and be open to new experiences or ideas.

Agreeableness

A personality trait in psychology that reflects the extent to which a person is cooperative, friendly, and compassionate toward others.