What Is the Present Value, When Interest Rates Are 10

question 118

Multiple Choice

What is the present value, when interest rates are 10 percent, of a $75 payment made every year forever?

• A) $6.75
• B) $675.00
• C) $750.00
• D) $1,000.00

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Definitions:

Digestion

The biological process by which the body breaks down food into smaller components that can be absorbed into the bloodstream for use by the body.

Large Intestine

The final section of the digestive system, responsible for water absorption and formation of feces.

Chyme

The semifluid mass of partly digested food that moves from the stomach to the small intestine.

Feces

Waste matter discharged from the bowels after food has been digested, consisting of remains of ingested food, bacteria, and dead cells.