Assume Your Uncle Will Pay You $100 for Each of the Next

question 50

Multiple Choice

Assume your uncle will pay you $100 for each of the next two years and $200 in years 3 and these amounts will be paid at year end. Assume the interest rate is 10% for the first two years and 12% for the next two (years 3 and 4) . What is your uncle's promise worth in today's dollars? (Round your answer)

• A) $317
• B) $342
• C) $453
• D) $512
• E) $600

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Definitions:

Risk Management

The process of identifying, assessing, and prioritizing risks followed by coordinated application of resources to minimize or control their impact.

Environmentally Related Activities

Actions or operations by organizations or individuals that have a direct impact on the natural environment.

Trade-Offs

Decisions involving a sacrifice of one goal or value in order to obtain or prioritize another, often in the context of limited resources.

Programs

Planned series of events, activities, or operations aimed at achieving specific goals or outcomes.