What Is the Future Value of a Series of $5,000

question 77

Multiple Choice

What is the future value of a series of $5,000 end-of-the-year cash flows to be received forever if the required rate of return is 6.00% per year and the first cash flow is one year from today?

• A)$83,333,333.33
• B)$8,333,333.33
• C)$83,333.33
• D)This question cannot be solved for a future value.

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Definitions:

Price Inelastic

A situation where the demand for a product does not change significantly in response to price changes.

Price Volatile

Characterizes a market or commodity whose price is subject to rapid, unexpected, and often large changes.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period.

Supply Curve

A graph showing the relationship between the quantity of goods supplied by producers and the price of those goods.