A Court Settlement Awarded an Accident Victim Four Payments of $50,000

question 48

Multiple Choice

A court settlement awarded an accident victim four payments of $50,000 to be paid at the end of each of the next four years. Using a discount rate of 4%,calculate the present value of the annuity.

• A) $173,255
• B) $178,495
• C) $181,495
• D) $184,095
• E) $200,000

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Definitions:

Disseminate Information

The act of spreading information widely, ensuring it reaches a broad audience.

Defamation

The act of damaging someone's good reputation by making false statements about them to a third party.

Guidelines

Instructions or principles that direct an individual's actions or the operations of an organization.

Accused

A person or group that is charged with a crime or accused of wrongdoing.