Alison Has $5000 to Invest and Is Trying to Decide

question 79

Multiple Choice

Alison has $5000 to invest and is trying to decide between two investment opportunities. One investment offers her future cash flows of $2000 for each of the next five years. Another investment offers her future cash flows of $5000 in year five and $7500 in year six. In order for her to compare the future cash flows of these two investments, what will she need to calculate?

• A) annuity value
• B) average annual payout
• C) common payout value
• D) present value

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Definitions:

Collective Action

Cooperative efforts by a group of individuals working together towards a common goal or interest.

Social Movements

Organized efforts by groups of people to enact, resist, or undo social change, often aiming to address issues of public concern.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured or reimburses the insured for expenses incurred from illness or injury.

Union Movement

Collective efforts and campaigns by workers and labor unions to improve working conditions, wages, and rights.