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:

Turner Syndrome

A chromosomal disorder affecting females, characterized by the presence of a single X chromosome, leading to various physical and developmental issues.

Poly-X Female

A genetic condition in females characterized by the presence of more than two X chromosomes, leading to various physical and developmental features.

X Chromosomes

One of the two types of sex chromosomes, X and Y, that determine the genetic sex of an organism; X chromosomes carry a significant number of genes unrelated to sex.

Ovarian Failure

A condition in which the ovaries stop functioning before age 40, leading to a loss of regular menstrual cycles and infertility.