What Annual Payment Must You Receive in Order to Earn

question 130

Multiple Choice

What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has a cost of $1,250?

• A) $77.19
• B) $81.25
• C) $85.31
• D) $89.58
• E) $94.06

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Definitions:

Relationship

The way in which two or more concepts, objects, or people are connected, or the state of being connected.

Taco Capacity

The maximum number of tacos that can be produced, held, or consumed in a given timeframe or by a specific system or facility.

Optimal Number

A specific value that results in the best possible outcome under given circumstances, often used in decision-making and resource allocation to maximize efficiency or profit.

Fish Tacos

A popular Mexican dish consisting of grilled or fried fish, lettuce or cabbage, pico de gallo, and creamy sauce, all within a corn or flour tortilla.