Lara Is Going to Receive $10,000 a Year at the End

question 12

Multiple Choice

Lara is going to receive $10,000 a year at the end of each of the next five years from her insurer to meet her education cost. Using a discount rate of 14%, the present value of the receipts can be stated as:

• A)PV = $10,000 (Annuity FV factor, i = 14%, n = 5).
• B)PV = $10,000 (PV factor, i = 14%, n = 5).
• C)PV = $10,000 (Annuity PV factor, i = 14%, n = 5).
• D)PV = $10,000 (FV factor, i = 14%, n = 5).

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Definitions:

Church and State

The phrase "church and state" refers to the relationship between religious organizations and the government, often emphasizing the degree of separation between them.

Marston Moor

A decisive battle of the English Civil War fought on 2 July 1644, where the Parliamentarians defeated the Royalists, greatly influencing the war's outcome.

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A geographical region of England, marked by its distinct cultural, historical, and economic identities, and typically considered to include areas such as Yorkshire, the North East, and the North West.