You Are Going to Pay $800 into an Account at the Beginning

question 28

Multiple Choice

You are going to pay $800 into an account at the beginning of each of 20 years.The account will then be left to compound for an additional 20 years until the end of year 40,when it will turn into a perpetuity.You will receive the first payment from the perpetuity at the end of the 41st year.If the account pays 14%,how much will you receive from the perpetuity each year (rounded to nearest $1,000) ?

• A) $140,000
• B) $150,000
• C) $160,000
• D) $170,000

---

Definitions:

Victimized

The condition of having been harmed, exploited, or wronged, often resulting in psychological or physical damage.

Media Coverage

The reporting and analysis of events, topics, and issues by the mass media.

Inner-city

The area near the center of a large city, often characterized by high population density and varying degrees of economic and social challenges.

Bad Woman Assumption

A prejudiced belief that tends to blame women for the negative experiences they go through, instead of acknowledging the external social factors at play.