You Buy a Perpetuity That Makes One Payment at the End

question 24

Short Answer

You buy a perpetuity that makes one payment at the end of each year.If you invest $10 000 and the interest rate is 5% per annum,what is the payment each year?

---

Definitions:

Delay Gratification

The ability to resist the temptation for an immediate reward and wait for a later reward, often considered a sign of emotional intelligence and self-control.

Developmental Psychologist

A psychologist who studies the psychological growth and changes that occur throughout a person's life.

Moral Development

The process through which individuals develop proper attitudes and behaviors toward other people in society, based on social and cultural norms, rules, and laws.

Emotions

Complex psychological states that involve three distinct components: a subjective experience, a physiological response, and a behavioral or expressive response.