Which of the Following Decisions Would Involve the Use of the Present

question 44

Multiple Choice

Which of the following decisions would involve the use of the present value of a $1 ordinary annuity table?

• A) Your brother buys your car and offers to pay you $500 now or $1,500 in two years.
• B) You win a lawsuit and are offered a lump-sum payment today of $100,000 or $15,000 a year for 20 years.
• C) Your father and mother wish to deposit enough money on the date of your high school graduation to enable you to take a cruise that will cost $7,000 when you graduate from college 4 years hence.
• D) You want to have $1,000,000 in order to retire at age 55, but need to know how much you will need to deposit each year from now until your 55th birthday.

---

Definitions:

Consumer Protection

Laws and regulations designed to ensure the rights of consumers, as well as fair trade, competition, and accurate information in the marketplace.

Public Protection

Measures and policies implemented to maintain the safety and security of the general public.

Administrative Laws

The body of law that governs the activities of administrative agencies of government, including rulemaking, adjudication, or the enforcement of a specific regulatory agenda.

Medicine

The science and practice of diagnosing, treating, and preventing diseases and injuries in humans and animals.