Assuming That an Investor Requires a 10% Annual Yield Over

question 35

Multiple Choice

Assuming that an investor requires a 10% annual yield over the next 12 years, how much would she be willing to pay for the right to receive $20,000 at the end of year 12?

• A) $6,053.91
• B) $6,372.62
• C) $62,768.57
• D) $136,273.84

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Definitions:

Organized

Characterized by a systematically structured and managed arrangement of tasks, operations, or materials.

Disciplined

Being disciplined refers to showing a controlled form of behavior, often involving obeying rules or a strict regimen.

Antagonistic

Characterized by opposition or hostility towards others, often resulting in conflict or resistance.

Acquiescent

Willing to accept or agree to something without protest or objection.