What Is the Present Value of a $1,100 Payment Made

question 55

Multiple Choice

What is the present value of a $1,100 payment made every year forever when interest rates are 4.5 percent?

• A) $11,100
• B) $21,089.37
• C) $22,963.14
• D) $24,444.44

---

Definitions:

Fundamental Attribution Error

The inclination to overly focus on individual traits while disregarding environmental influences when evaluating the actions of others.

Correspondence Bias

The tendency to attribute a person's behavior to their personality or disposition, rather than to external factors.

Stereotyping

The act of making generalized assumptions or beliefs about the characteristics of all members of a group based on simplified or standardized conceptions.

Defensive Attribution

The tendency to blame victims for their misfortune, so that one feels less likely to be victimized in a similar way.