What Is the Present Value of a $50 Perpetuity If

question 32

Multiple Choice

What is the present value of a $50 perpetuity if interest rates are 7%?

• A) $1.21
• B) $18.12
• C) $714.29
• D) $3.50
• E) $593.23

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Definitions:

Rawls

John Rawls was an American political philosopher in the liberal tradition, best known for his theory of justice as fairness.

Underlying Principles

The fundamental ideas or concepts that form the basis of a system, theory, or philosophy.

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A structured organization or network managed or funded by the government that provides goods or services to the public.

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The legal, ethical, and moral entitlements individuals possess and the obligations they are bound to perform.