Suppose the Present Value of a 2-Year Ordinary Annuity Is

question 102

Multiple Choice

Suppose the present value of a 2-year ordinary annuity is $100.If the discount rate is 10 percent,what must be the annual cash flow?

• A) $65.45
• B) $82.64
• C) $57.62
• D) $53.78
• E) $79.22

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Definitions:

Insomnia

A sleep disorder where individuals have difficulty falling asleep, staying asleep, or experience non-restorative sleep, leading to distress or impairment in daily functioning.

Mental Flexibility

The ability to adapt one's thinking and behavior in response to changing circumstances or new information.

Creativity

The ability to produce original and valuable ideas or solutions by thinking outside the conventional boundaries.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.