Marshall Has Received an Inheritance and Wants to Invest a Sum

question 18

Multiple Choice

Marshall has received an inheritance and wants to invest a sum of money today that will yield $5,000 at the end of each of the next 10 years.Assuming he can earn an interest rate of 5% compounded annually,how much of his inheritance must he invest today? (PV of $1,FV of $1,PVA of $1,and FVA of $1) $\bold{\text{(Use appropriate factor(s) from the tables provided.) }}$

• A)$50,000.00
• B)$47,500.00
• C)$45,125.00
• D)$38,608.50
• E)$100,000.00

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Definitions:

Romantic Love

A complex set of emotions and behaviors characterized by passion, intimacy, and commitment, typically involving a strong attraction and emotional attachment to another person.

Companionate Love

A form of love characterized by deep affection, attachment, and commitment.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, and praise.

External Reward

Relates to incentives or rewards that come from an outside source, rather than from within, and motivate behavior.