Trish Receives $450 on the First of Each Month

question 109

Multiple Choice

Trish receives $450 on the first of each month. Josh receives $450 on the last day of each month. Both Trish and Josh will receive payments for next four years. At a discount rate of 9.5 percent, what is the difference in the present value of these two sets of payments? 

• A) $141.80 
• B) $151.06 
• C) $154.30 
• D) $159.08 
• E) $162.50 

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Definitions:

Novelty

The quality of being new, original, or unusual.

Relational Stages

The various phases that relationships go through, from initial formation and intensification to possible decline and dissolution.

Progressing Speed

The rate at which something moves forward or develops.

Reflective Turning Point

Event that signals a change in the way a relationship is defined.