If a Perpetuity Is Worth $10,000 Today,and You Expect to Receive

question 33

Multiple Choice

If a perpetuity is worth $10,000 today,and you expect to receive $1,000 every year,what is the market interest rate?

• A)1 percent
• B)10 percent
• C)0.01 percent
• D)0.10 percent
• E)The rate cannot be determined.

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Definitions:

Protons

Subatomic particles found in the nucleus of an atom, with a positive electric charge.

Neutrons

Subatomic particles present in the nucleus of an atom, having no electric charge.

Hydrogen Bond

A feeble connection formed between two molecules through the electrostatic force that attracts a proton in one molecule to an electronegative atom in the other.