Your Grandfather Left You an Inheritance That Will Provide an Annual

question 70

Multiple Choice

Your grandfather left you an inheritance that will provide an annual income for the next 20 years. You will receive the first payment one year from now in the amount of $2,500. Every year after that, the payment amount will increase by 5 percent. What is your inheritance worth to you today if you can earn 7.5 percent on your investments? 

• A) $37,537.88 
• B) $28,667.40 
• C) $23,211.00 
• D) $35,612.20 
• E) $30,974.92 

---

Definitions:

Era of Downsizing

A period characterized by a significant reduction in the workforce of organizations to cut costs and improve efficiency.

Limited Power

A condition where an entity's authority or capacity to act and influence is restricted by external factors or internal regulations.

Cognitive Ability

The mental capacity to reason, remember, understand, solve problems, and make decisions.

Leadership Trait

Characteristic qualities or features exhibited by effective leaders, such as decisiveness, integrity, and the ability to inspire others.