What Is the Present Value of a $200 Perpetuity When

question 56

Multiple Choice

What is the present value of a $200 perpetuity when the discount rate is 10%?

• A)$2,000
• B)$20,000
• C)$4,000
• D)$40,000

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Definitions:

Aztec

A Mesoamerican culture that flourished in central Mexico in the post-classic period from 1300 to 1521, known for their complex society, architecture, and contributions to mathematics and astronomy.

Epic of Deganawidah

A foundational narrative of the Iroquois (Haudenosaunee) Confederacy, detailing the confederation of the indigenous tribes of the northeastern United States and Canada by the peacemaker, Deganawidah.

Exchanging Gifts

The act of giving and receiving presents, often as a means of expressing goodwill, celebrating holidays, or solidifying social bonds.

Successful Colonization

The establishment of control by one country over a foreign territory, leading to significant settlement and economic exploitation, often considered successful from the colonizer's perspective.