A Perpetuity of $5,000 Per Year Beginning Today Is Said

question 2

Multiple Choice

A perpetuity of $5,000 per year beginning today is said to offer a 15 percent interest rate.What is its present value?

• A)$33,333.33
• B)$37,681.16
• C)$38,333.33
• D)$65,217.39 PV = $5,000 +

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Definitions:

Secondary Data

Information that has been collected by someone else previously and is used for research or analysis by others, often in contrast to primary data collected firsthand.

Census of Agriculture

A national survey conducted to collect, analyze, and publish data on various aspects of agriculture, including farm operations, production, and management practices.

Farm Size

The total area of land under cultivation or available for agricultural production within a single farm.

Survey

A method of collecting data and opinions from individuals about various topics, usually through a set of questions.