What Is the Present Value of $10,000 Per Year in Perpetuity

question 100

Multiple Choice

What is the present value of $10,000 per year in perpetuity at an interest rate of 10%?

• A)$10,000
• B)$100,000
• C)$200,000
• D)$1,000

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Definitions:

Juliet

A reference to a major character from William Shakespeare's play "Romeo and Juliet," often symbolizing young love or tragic romance.

Utility Function

A mathematical representation of how consumer preferences lead to the selection of goods and services in order to achieve the highest level of satisfaction.

Whisky Consumption

The action or practice of drinking whisky, measured in terms of quantity or frequency.

Hatfield

Likely refers to a location or surname, but within an economic context, it doesn't have a specific definition unless related to a study, model, or economic principle authored by someone named Hatfield.