Money Is Worth 5% Compounded Semi-Annually

question 14

Multiple Choice

Money is worth 5% compounded semi-annually. What is the value today of a contract that will bring in a payment of $86,500 in nine years?

• A) $63,276
• B) $38,090
• C) $55,461
• D) $41,962
• E) $55,759

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Definitions:

Omaha Platform

The political agenda adopted by the Populist Party in the United States in 1892, focusing on issues like the direct election of Senators and currency reform.

Terra Nullius

A legal doctrine that justified the annexation of land on the basis it was "owned by no one," notably used by European settlers in places like Australia.

Disproportionate

Lacking in proportion, balance, or equivalence, often used to describe uneven or unfair distribution of resources, representation, or opportunities.

Establishment

An influential social or political group or institution, often considered part of the mainstream power structure, holding significant sway in societal decisions and norms.