You Are Considering an Investment in a 40-Year Security

question 44

Multiple Choice

You are considering an investment in a 40-year security.The security will pay R25 a year at the end of each of the first three years.The security will then pay R30 a year at the end of each of the next 20 years.The simple interest rate is assumed to be 8 percent, and the current price (present value) of the security is R360.39.Given this information, what is the equal annual payment to be received from Year 24 through Year 40 (i.e., for 17 years) ?

• A) R35
• B) R38
• C) R40
• D) R45
• E) R50

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In a business context, it refers to the rate at which employees leave a company and are replaced within a certain period.

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A government program designed to provide financial assistance to people with insufficient or no income, mainly targeting the elderly, disabled, and unemployed.

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A hypothesis indicating the expected direction of difference or linkage between variables.

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An emotional response characterized by anxiety or concern about becoming a victim of crime.