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:

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty.

Dependable

Capable of being relied upon; trustworthy and reliable in terms of consistency and performance.

Careful

Being careful involves acting with thought and caution to avoid harm or mistakes.

Selective Perception

The method through which people filter media messages to align with their preferences, while disregarding any contradictory perspectives.