You Are Currently at Time Period 0, and You Will

question 76

Multiple Choice

You are currently at time period 0, and you will receive the first payment on an annual payment annuity of R100 in perpetuity at the end of this year.Six full years from now you will receive the first payment on an additional R150 in perpetuity, and at the end of time period 10 you will receive the first payment on an additional R200 in perpetuity.If you require a 10 percent rate of return, what is the combined present value of these three perpetuities?

• A) R2,349.50
• B) R2,526.85
• C) R2,685.42
• D) R2,779.58
• E) R2,975.40

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Definitions:

CD4 Count

A measure of the number of CD4+ T lymphocytes in the blood, an important indicator of immune system health, especially in the context of HIV/AIDS.

Helper T Cells

A type of T cell that plays an important role in the immune system by activating and directing other immune cells.

Cubic Millimeter

A unit of volume in the metric system equal to one millionth of a liter, often used in scientific measurements of very small quantities.

Retroviruses

A type of virus that inserts a copy of its RNA genome into the DNA of the host cell it infects, leading to the possibility of lifelong infection, such as HIV.