You Have Some Property for Sale and Have Received Two

question 86

Multiple Choice

You have some property for sale and have received two offers. The first offer is for $98,000 in cash today. The second offer is the payment of $50,000 today and an additional $60,000 two years from
Today. The applicable discount rate is 11%. You should accept the _____ offer as it is worth _____
More today.

• A) first; $412.85
• B) first; $587.49
• C) second; $349.16
• D) second; $491.80
• E) second; $697.35

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Definitions:

Epigenetics

The study of how behaviors and environment can cause changes that affect the way genes work without altering the DNA sequence.

Phenotype

A collection of visible attributes or qualities in an organism, which emerge from how its genetic makeup interacts with its surroundings.

Percentage Of Variance

A statistical measure that describes the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model.

Nonshared Environments

Environmental factors that are not experienced by all relevant members of a household or study group and so can cause differences in their behaviors or traits.