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

question 17

Multiple Choice

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

• A) $33,333.33
• B) $37,681.16
• C) $38,333.33
• D)$65,217.39

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Definitions:

Legal Duty

Refers to an obligation imposed by law upon an individual to act or refrain from acting in a certain manner.

Proximately Caused

A legal principle that limits the damages a plaintiff can recover to those which are directly related to the defendant's actions.

Proximate Cause

A legal concept that links a defendant’s conduct with the plaintiff's injury or damage, establishing liability based on the foreseeability of the harm.

Unforeseeable Consequences

Outcomes that could not have been predicted or expected based on the information available at the time of decision or action.