If the Interest Rate Is 13% and Will Remain 13

question 23

Multiple Choice

If the interest rate is 13% and will remain 13% forever, how much would a rational investor be willing to pay for an asset that will pay him 6,780 dollars 1 year from now, 1,276 dollars 2 years from now, and nothing at any other time?

• A)53,846.15 dollars
• B)6,000 dollars
• C)98,000 dollars
• D)7,000 dollars
• E)8,000 dollars

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Definitions:

Categorical Imperative

A concept in moral philosophy developed by Immanuel Kant, stating that one should act only according to that maxim by which one can at the same time will that it should become a universal law.

Ethical Codes

Written guidelines issued by an organization to its workers and management to help them conduct their actions in accordance with its primary values and ethical standards.

Ethical Approaches

Philosophical theories or perspectives guiding the determination of what is right and wrong in moral terms, influencing decision-making and behavior.

Texas Instruments

An American technology company that designs and manufactures semiconductors and various integrated circuits.