You Want to Purchase a Security That Will Pay You

question 45

Multiple Choice

You want to purchase a security that will pay you $1,000 five years from now. If you want to earn an annual nominal rate of 5.5%, how much should you pay for this investment today?

• A)$727.41
• B)$737.46
• C)$741.41
• D)$743.51
• E)$765.13

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Definitions:

Amount In Controversy

The total amount of money or value at stake in legal proceedings.

Federal Court

A court established by the federal government with jurisdiction over disputes involving federal laws, constitutional issues, and certain matters between states or between the U.S. and foreign governments.

Jurisdiction

The official power to make legal decisions and judgments, often geographically or subject matter defined.

Federal Question

Legal cases involving the interpretation of the U.S. Constitution, federal laws, or treaties, which fall under the jurisdiction of federal courts.