A Perpetuity Will Pay $1000 Per Year,starting Five Years After

question 52

Multiple Choice

A perpetuity will pay $1000 per year,starting five years after the perpetuity is purchased.What is the future value (FV) of this perpetuity,given that the interest rate is 4%?

• A)$1410
• B)$20,582
• C)$21,370
• D)There is no solution to this problem.

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Definitions:

Psychology Student's Syndrome

The tendency for psychology students to believe they or people they know suffer from the psychological disorders they learn about.

Cultural Syndromes

Sets of particular symptoms of distress found in particular cultures, which may or may not be recognized as an illness within the culture.

Restricted Syndromes

Disorders or conditions characterized by a limited set of symptoms or behaviors, typically within a specific context or situation.

Generalized Anxiety Disorder

A mental health condition characterized by persistent and excessive worry about various aspects of life, often without a clear cause.