How Much More Is a Perpetuity of $1,000 Worth Than

question 48

Multiple Choice

How much more is a perpetuity of $1,000 worth than an annuity of the same amount for 20 years? Assume an interest rate of 10% and cash flows at the end of each period.

• A) $297.29
• B) $1,486.44
• C) $1,635.08
• D) $2,000.00

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Definitions:

Displaced Aggression

involves redirecting aggressive feelings or actions from the intended target to a more vulnerable or accessible target.

Prosocial Behavior

Prosocial Behavior refers to voluntary actions aimed at benefiting others, such as helping, sharing, and showing compassion.

Empathy

The ability to understand and share the feelings of another person from their perspective, often leading to compassion and support.

Relational Aggression

A form of aggressive behavior manifested through intentionally harming someone's social relationships or feelings of belonging.