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:

Behavioral Style

an individual's characteristic way of behaving, reacting, or responding to various environmental stimuli.

Characteristic Way

A manner or method that is typical or distinctive of an individual, group, or process.

Socioemotional Development

The process of developing the ability to experience, express, and manage emotions, as well as establishing meaningful relationships with others.

Erikson's Theory

A psychoanalytic theory of psychological development comprising eight stages from infancy to adulthood, emphasizing the influence of society on personality development.