The Present Value of a $20,000 Perpetuity at a 7

question 56

Multiple Choice

The present value of a $20,000 perpetuity at a 7 percent discount rate is: (Round to the nearest dollar)

• A) $186,915
• B) $285,714
• C) $140,000
• D) $325,000

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Definitions:

Dying Trajectory

The speed with which a person dies.

Health-care Professionals

Trained individuals who provide services aimed at maintaining or improving people's health, including doctors, nurses, therapists, and pharmacists.

Very Ill

A state of suffering from a severe or critical health condition that significantly impacts one's well-being and may require intensive care or treatment.

Salary

The amount of regular payment from an employer to an employee, typically expressed as an annual sum and paid in monthly or biweekly intervals.