You Will Receive a Stream of Annual $70 Payments to Begin

question 131

Multiple Choice

You will receive a stream of annual $70 payments to begin at the end of year 0 until the final payment at the BEGINNING of year 5.What amount will you have at the end of year 5 if you can invest all amounts at an 11% interest rate?

• A) $350.00
• B) $435.95
• C) $483.90
• D) $614.83

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Definitions:

Esker

A long, winding ridge of stratified sand and gravel, typically occurring in glaciated and formerly glaciated regions, formed by retreating glaciers or meltwater.

Levees

Natural or artificial embankments built along rivers or watercourses to prevent their waters from overflowing onto adjacent land.

Flooding

The overflow of water onto land that is normally dry, often caused by heavy rain, melting snow, or storm surges.

Constructed

Made, built, or put together using various parts or materials, often referring to buildings, roads, or other engineered structures.