Which of the Following Alternatives Signify the Difference Between the Present

question 72

Multiple Choice

Which of the following alternatives signify the difference between the present value of a $150 perpetuity and 2-year $150 annuity, both discounted at 15 percent per annum.

• A)The perpetuity would require an initial investment worth $100 while the annuity would require an initial investment worth $244.07.
• B)The perpetuity would require an initial investment worth $1,500 while the annuity would require an initial investment worth $115.07.
• C)The perpetuity would require an initial investment worth $1,000 while the annuity would require an initial investment worth $244.07.
• D)The perpetuity would require an initial investment worth $100 while the annuity would require an initial investment worth $115.07.

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Definitions:

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Social Incompetence

A lack of skill or ability in navigating social interactions effectively, often resulting in difficulties in forming and maintaining relationships.

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A type of aggression focused on harming others through manipulation or damage to relationships and social status, rather than physical harm.