Drew Receives an Inheritance That Pays Him $54,000 Every Three

question 90

Multiple Choice

Drew receives an inheritance that pays him $54,000 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 8.9% (EAR) ?

• A) $314,366
• B) $471,549
• C) $392,957
• D) $432,000

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Definitions:

Kingdom

In biological taxonomy, a major category that classifies life forms into broad groups based on fundamental characteristics.

Dinoflagellate

Single-celled organisms with a mixotrophic lifestyle, part of the plankton community, known for producing red tides.

Choanoflagellates

Flagellated heterotrophic protists closely related to animals.

Collar

In the context of biology, often refers to a region or structure that encircles another, but without additional context, the term is overly broad.