Suppose the Present Value of a 2-Year Ordinary Annuity Is

question 102

Multiple Choice

Suppose the present value of a 2-year ordinary annuity is $100.If the discount rate is 10 percent,what must be the annual cash flow?

• A) $65.45
• B) $82.64
• C) $57.62
• D) $53.78
• E) $79.22

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Definitions:

Sober

Not affected by alcohol; not drunk, and more broadly, serious, sensible, and solemn.

Context-dependent Memory

The improved recall of specific episodes or information when the context present at encoding and retrieval are the same.

Underwater

Relates to being submerged or located beneath a body of water.

Retrieved

Refers to information that has been recovered or accessed, usually from memory or a storage system.