What Is the Present Value of a $1,100 Payment Made

question 55

Multiple Choice

What is the present value of a $1,100 payment made every year forever when interest rates are 4.5 percent?

• A) $11,100
• B) $21,089.37
• C) $22,963.14
• D) $24,444.44

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Definitions:

Distribution Systems

Distribution systems are networks that companies use to move products from production facilities to end consumers, including warehouses and shipping processes.

Reliability

The probability that a system or component will perform its required function under stated conditions for a specified period of time.

Capacity Utilization

The percentage of an entity's total production capacity that is actually being used over a specific period.