Wilt Has a Consulting Contract That Calls for Annual Payments

question 51

Multiple Choice

Wilt has a consulting contract that calls for annual payments of $50,000 a year for five years with the first payment due today.What is the current value of this contract if the discount rate is 8.4 percent?

• A)$214,142.50
• B)$201,867.47
• C)$195,618.19
• D)$197,548.43
• E)$224,267.10

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Income on which tax must be paid; total income minus deductions and exemptions.

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