A Rich Donor Gives a Hospital $100,000 One Year from Today.Each

question 58

Multiple Choice

A rich donor gives a hospital $100,000 one year from today.Each year after that,the hospital will receive a payment 5% larger than the previous payment,with the last payment occurring in ten years' time.What is the present value (PV) of this donation,given that the interest rate is 9%?

• A)$467,922.22
• B)$585,987.27
• C)$772,173.49
• D)$779,843.27

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Definitions:

First Review

The initial evaluation or assessment of a work product, document, or performance, often to provide preliminary feedback.

Intention Level

The degree of determination or resolve one has in aiming to accomplish a specific goal or task.

Retention

The ability to keep or retain information, employees, or students over time.

Recall

The cognitive process of retrieving information from memory without the aid of cues.