A Perpetuity of $5,000 Per Year Beginning Today Offers a 15

question 88

Multiple Choice

A perpetuity of $5,000 per year beginning today offers a 15% return.What is its present value?

• A) $33,333.33
• B) $37,681.16
• C) $38,333.33
• D) $65,217.39

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Definitions:

Production Possibilities Frontier

A graph that represents all the highest production options for two or more products, based on a specific set of resources.

Commodity Per Time

A measure of the rate at which goods or services are produced, delivered, or consumed over a specific period.

Other Commodity

General term for any marketable item produced to satisfy wants or needs, distinct from services.

Point C To D

A reference to moving or transitioning from one defined position or condition to another within a given context.