Jing Purchased Property and Must Make an Annual Mortgage Payment

question 95

Multiple Choice

Jing purchased property and must make an annual mortgage payment of $6,000 for the next 30 years. What is the present discounted value of the payment stream at a 5% interest rate?

• A) $88,450.42
• B) $110,682.21
• C) $92,234.71
• D) $105,320.57

---

Definitions:

Los Angeles

A major city located in southern California, USA, known for its entertainment industry, cultural diversity, and significant economic and demographic influence.

Rodney King

A figure central to the 1991 police brutality case in Los Angeles, whose violent arrest led to widespread riots and discussions about race and policing in the United States.

Ethnic Group

A community or population made up of people who share a common cultural background or descent.

Racism

A set of beliefs about the claimed superiority of one racial or ethnic group; used to justify inequality and often rooted in the assumption that differences among groups are genetic.