Drew Receives an Inheritance That Pays Him $50 000 Every

question 17

Multiple Choice

Drew receives an inheritance that pays him $50 000 every three months for the next two years. Which of the following is closest to the present value (PV) of this inheritance if the interest rate is 8.5% (EAR) ?

• A)$400 000
• B)$365 322
• C)$364 309
• D)$354 223

Recognize the principles of taxation and their application in policy justification.

Identify concepts of horizontal and vertical equity in taxation.

Describe the characteristics and effects of progressive, proportional, and lump-sum tax systems.

Understand the benefits principle of taxation and its application.

---

Definitions:

Menstruated

The process of menstruation, which is the monthly shedding of the uterine lining in females, typically associated with the reproductive cycle.

Dualistic Thinking

Dividing the cognitive world into opposites, such as good versus bad, or us versus them.

Cognitive World

A term that may refer to the realm of mental processes and structures involved in perception, thinking, understanding, and memory.

Serotonin

A neurotransmitter important in the regulation of mood, anxiety, and happiness, among other functions.