You Are Currently at Time Period 0,and You Will Receive

question 88

Multiple Choice

You are currently at time period 0,and you will receive the first payment on an annual payment annuity of $100 in perpetuity at the end of this year.Six full years from now you will receive the first payment on an additional $150 in perpetuity,and at the end of time period 10 you will receive the first payment on an additional $200 in perpetuity.If you require a 10 percent rate of return,what is the combined present value of these three perpetuities?

• A) $2,349.50
• B) $2,526.85
• C) $2,685.42
• D) $2,779.58
• E) $2,975.40

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Definitions:

Figurines

Small statues or sculpted representations, often collected as a hobby or used for decorative purposes.

Plastic

A synthetic material made from a wide range of organic polymers that can be molded into shape when soft and then set into a rigid or slightly elastic form.

Clay

A natural, earthy material consisting of fine minerals with plasticity when moist, used for making bricks, pottery, and sculptures.

Pounds of Plastic

A measure of weight used to quantify plastic material, often used in manufacturing or recycling contexts.