Your Sister Paid $10,000 (CF at T = 0) for an Investment

question 16

Multiple Choice

Your sister paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $10,000 at the end of the 5th year.What is the expected rate of return on this investment?

• A) 6.77%
• B) 7.13%
• C) 7.50%
• D) 7.88%
• E) 8.27%

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Definitions:

Myelin Sheath

A fatty layer that encases and insulates axons of many neurons, facilitating the rapid transmission of neural impulses.

Axon

A long, slender projection of a neuron that transmits electrical impulses away from the neuron's cell body to other neurons or to muscles or glands.

Synaptic Gap

The synaptic gap, or synaptic cleft, is the small space between neurons across which neurotransmitters travel to transmit signals from one neuron to another.

Dendrite

Tree-like extensions from the neuron cell body that receive signals from other neurons and conduct them toward the cell body.