You Are Trying to Prepare a Budget Based Upon the Amount

question 55

Multiple Choice

You are trying to prepare a budget based upon the amount of cash flow that you will have available 5 years from now.You are initially promised a regular annuity of $50 with the first payment to be made 1 year from now and the last payment 5 years from now.However,you are actually going to receive an annuity due with the same number of payments but where the first payment is to begin immediately.How much (or less) cash will you have 5 years from now based upon that error if the rate to invest funds is 10%?

• A) $50.00
• B) $38.58
• C) $30.52
• D) ($30.52)

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Definitions:

Legislation

Laws or legal statutes that are enacted by a legislative body through the legislative process.

1950s

A decade marked by post-World War II prosperity, the beginning of the Cold War, and significant social and cultural shifts in the United States and around the world.

McCarthy Era

A period in United States history during the early 1950s characterized by Senator Joseph McCarthy's campaign against alleged communists in the government, which led to widespread fear and suspicion.

September 11

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