The Present Value of a $100 Per Year Perpetuity at 10

question 58

Multiple Choice

The present value of a $100 per year perpetuity at 10% per year interest rate is $1000.What would be the present value of this perpetuity if the payments were compounded continuously?

• A)$1000.00
• B)$1049.21
• C)$1024.40
• D)$986.14

Analyze the impact of cognitive errors on personal behavior and choices.

Recognize the influence of presentation and framing on perception and decision-making.

Understand the concept of statistical regression and how it applies to real-world situations.

Identify strategies for reducing cognitive errors.

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Definitions:

Customer Benefits

The advantages or value that consumers receive from using a product or service, which can drive purchasing decisions.

Value

The importance, worth, or usefulness of something, often considered in terms of what is offered to a customer or stakeholder.

Generic Strategy

Broad marketing strategies that can be applied across industries, typically categorized as cost leadership, differentiation, or focus strategies.

Market Share

The proportion of total market sales within an industry that is held by a specific company.