A Perpetuity Pays $85 Per Year and Costs $950

question 20

Multiple Choice

A perpetuity pays $85 per year and costs $950.What is the rate of return?

• A) 8.95%
• B) 9.39%
• C) 9.86%
• D) 10.36%
• E) 10.88%

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Definitions:

Competence

The ability or skillset required to efficiently perform or complete a specific task or job.

Self-determination

The process by which an individual controls their own life, making choices and decisions based on their own preferences and interests rather than being influenced by external forces.

Autonomy

The capacity to make an informed, uncoerced decision or the right of self-governance.

Positive Outlooks

The habit of seeing the good in situations, which can influence overall happiness and well-being.