Assuming a 6% Annual Discount Rate, What Is the Value

question 19

Multiple Choice

Assuming a 6% annual discount rate, what is the value of receiving $100.00 annually perpetually beginning next year?

• A)$2,137.50
• B)$1,000.00
• C)$1,666.67
• D)$1,333.33

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Definitions:

Allowable Charge

The maximum amount a health plan or insurance pays for a covered healthcare service, also known as the approved, eligible, or allowed amount.

Taxonomy Code

A unique identifier for healthcare providers used primarily for billing and administrative purposes.

Medical Specialty

A branch of medical practice focused on a specific group of patients, diseases, skills, or philosophy, such as cardiology or dermatology.