Salvatore Has the Opportunity to Invest in a Scheme Which

question 26

Multiple Choice

Salvatore has the opportunity to invest in a scheme which will pay $5000 at the end of each of the next 5 years. He must invest $10,000 at the start of the first year and an additional $10,000 at the end of the first year. What is the present value of this investment if the interest rate is 3%?

• A) -$3189.80
• B) -$5907.57
• C) 5907.57
• D) $3189.80

---

Definitions:

Rights

Entitlements or permissions granted to individuals or entities, legally or ethically, to perform certain actions or to be in a particular state.

Indorsement

An act of signing one's name on the back of a check or other negotiable instrument, thereby transferring the rights to another party.

Negotiation

The process by which two or more parties aim to reach a mutual agreement through dialogue and compromise on various issues.

Handwritten Signature

A person's unique method of writing their name with pen and paper, often used for authorization or personal verification.