Which of the Following Formulas Is INCORRECT

question 50

Multiple Choice

Which of the following formulas is INCORRECT?

• A)PV of a growing annuity = C ×
• B)PV of an annuity = C ×
• C)PV of a growing perpetuity =
• D)PV of a perpetuity =

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Definitions:

Physical Sciences

Branches of science that study inanimate natural objects, including astronomy, chemistry, physics, and earth sciences.

Other-Things-Constant Assumption

The assumption, when focusing on the relation among key economic variables, that other variables remain unchanged; in Latin, ceteris paribus.

Rational Self-Interest

Each individual tries to maximize the expected benefit achieved with a given cost or to minimize the expected cost of achieving a given benefit.

Economic Actors

Individuals, companies, and organizations involved in the production, distribution, and consumption of goods and services.