A Financial Planner Has Suggested You Invest in a New

question 43

Multiple Choice

A financial planner has suggested you invest in a new insurance product he is selling that will pay you $20,000 a year for twenty years once you retire. If you plan to retire in 10 years and
Your opportunity cost of capital is a constant 6% a year, what is the most you should pay today
For this investment? Assume you will receive your first payment at the end of 10 years and
Round your answer to the nearest dollar.

• A)$229,398
• B)$147,202
• C)$135,781
• D)$128,095

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Definitions:

Fear Conditioning

A learning process where an organism learns to associate a neutral stimulus with an adverse event, leading to a conditioned response to the originally neutral stimulus.

Eyeblink Conditioning

A form of classical conditioning where a subject learns to blink in response to a previously neutral stimulus that has been paired with a stimulus that naturally elicits blinking.

Brain

An organ in the central nervous system of animals, responsible for processing sensory information, regulating bodily functions, and facilitating cognition and memory.

Paradigms

Established sets of concepts or methodological practices within a scientific discipline or other organizational framework.