You Have Been Offered a Project Paying $300 at the Beginning

question 80

Multiple Choice

You have been offered a project paying $300 at the beginning of each year for the next 20 years.The first payment occurs at the beginning of the first year.What is the maximum amount of money you would invest in this project if you expect 9 percent rate of return to your investment? (Round to the nearest whole dollar)

• A) $2,738
• B) $2,985
• C) $15,347
• D) $6,000

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Definitions:

Offer Immediately

This term typically refers to a proposal or opportunity presented without delay.

Reasonably Definite Terms

A principle that a contract must be clear enough in its terms so that the obligations of each party can be understood and enforced.

Offer

A key factor in the agreement element of a contract; consists of the terms and conditions set by one party, the offeror, and presented to another party, the offeree.

Elements

Elements are the basic components or essential parts that make up something, such as the periodic table elements in chemistry or the parts of a legal claim.