Kwantlen University Received a Significant Donation of $50,000 Per Year

question 369

Multiple Choice

Kwantlen University received a significant donation of $50,000 per year for the next fifteen years, with the first payment being received today. Given a discount rate of 5.5%, determine the present
Value of the donation.

• A) $531,682
• B) $530,582
• C) $529,482
• D) $528,382
• E) $554,282

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Definitions:

Retailer

A business or person that sells goods directly to consumers, acting as the final link in the distribution chain from manufacturers to end users.

Robinson-Patman Act

A federal law in the United States that bans practices by producers that hinder competition, particularly discriminating in pricing.

Functional Discount

A price reduction offered to channel members who perform certain functions such as selling, storing, and record-keeping.

Wholesaler

A business or person that buys goods in large quantities from manufacturers and sells them in smaller amounts to retailers, typically at lower prices.