You Are Comparing Two Investment Options

question 98

Multiple Choice

You are comparing two investment options.The cost to invest in either option is the same today.Both options will provide you with $20,000 of income.Option A pays five annual payments starting with $8,000 the first year followed by four annual payments of $3,000 each.Option B pays five annual payments of $4,000 each.Which one of the following statements is correct given these two investment options?

• A)Option A is preferable because it is an annuity due.
• B)Option B has a higher present value than option A given a positive rate of return.
• C)Option A is the better choice of the two given any positive rate of return.
• D)Option B has a lower future value at year 5 than option A given a zero rate of return.
• E)Both options are of equal value given that they both provide $20,000 of income.

Describe the role of celebrities and content producers within the media and public relations.

Discern the impact of digital and social media in modern public relations campaigns.

Understand the role of public relations in crisis management and the importance of positive representation.

Comprehend the importance of community engagement and promoting volunteer efforts in enhancing organizational image.

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Definitions:

Tort

A civil wrong or injury that leads to legal liability, allowing the injured party to seek compensation for damages caused by the tortfeasor.

Exploitation

Also referred to as financial abuse, it is the unauthorized or improper use of the resources of an elder for monetary or personal benefit, profit, or gain. Examples include forgery; misuse or theft of money or possessions; use of coercion or deception to surrender finances or property; or improper use of guardianship or power of attorney.

Elder

A term that refers to an older person, often used with respect and to acknowledge their wisdom and experience.

Monetary Benefit

Financial advantage or gain received from an action or investment.