Your Recently Departed Rich, Eccentric Uncle Has Left for You

question 301

Multiple Choice

Your recently departed rich, eccentric uncle has left for you in his will a large sum of money. Unfortunately, rather than giving you this sum of money immediately, he has instructed the executor
Of the will to pay you $10,000 in one year. This payment is to grow by 9% each year and to be made
Each year forever. If the appropriate discount rate is 10%, how much have you actually inherited?

• A) $100,000
• B) $1,000,000
• C) $11,111.11
• D) $9,090.90
• E) $10,000,000

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Definitions:

Grooming Touch

a form of physical interaction used to clean, maintain, and strengthen social bonds, commonly observed in many animal species and humans.

Premature

Occurring or developing earlier than expected or before the usual time, often used in the context of birth or development.

Human Babies

Describes newborn or very young offspring of human beings.

Hand Massage

A therapeutic technique involving the manipulation of soft tissues in the hands to relieve pain, stress, and improve circulation.