A Perpetuity Has a PV of $20,000

question 30

Multiple Choice

A perpetuity has a PV of $20,000. If the interest rate is 6%, how much will the perpetuity pay every year?

• A) $600
• B) $960
• C) $1200
• D) $720

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Definitions:

Abdominal Cavity

The largest body cavity in humans, housing many vital organs, including the stomach, liver, and intestines, enclosed by the abdominal muscles and the pelvis.

Segment of DNA

A specific sequence or region of DNA that contains genetic information or codes for specific proteins.

Body Trait

A physical or physiological characteristic that is genetically determined.

Anatomical Position

When the body is standing upright and facing forward with the arms at the side and the palms of the hands facing forward.