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

Recognize which financial statement reports specific account balances.

Differentiate between permanent and temporary accounts.

Prepare journal entries for transactions involving purchases, returns, and payments.

Apply the net method for recording purchases in a periodic inventory system.

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Definitions:

Thalamus

A structure within the brain that acts as a relay station, transmitting information between different areas of the brain.

Magnetic Resonance Imaging (MRI)

Brain-imaging method using radio waves and magnetic fields of the body to produce detailed images of the brain.

Radio Waves

Electromagnetic waves with wavelengths longer than infrared light, used in communication systems for broadcasting, radar, and satellite transmissions.

Magnetic Fields

Invisible fields that exert a force on objects that are magnetic in nature or moving electrical charges.