Use This Information to Answer the Following Question What Is the Present Value of Receiving $400 at the |

question 21

Multiple Choice

Use this information to answer the following question. $$\begin{array} { | c | c | c | } \hline \text { Periods } & \text { Present Value af } 1 \text { at } 7 \text { Percent } & \text { Present Value af Ordinary Annuity af } \\&&\text { \$1 at } 7 \text { Percent } \\1 & 0.935 & 0.935 \\\hline 2 & 0.873 & 1.808 \\\hline 3 & 0.816 & 2.624 \\\hline\end{array}$$ What is the present value of receiving $400 at the end of each year for three years?

• A) $1,122.00
• B) $326.40
• C) $979.20
• D) $1,049.60

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Definitions:

Non-Litigious

Matters or activities not involving litigation or legal proceedings.

Binding Arbitration

An arbitration agreement where the decision made by the arbitrator is legally binding and enforceable, similarly to a court judgment.

Distress

Seizure by a landlord of any property left by a tenant and holding it until the rent is paid or selling it to pay rent owing.

Relief against Forfeiture

Judicial intervention to protect against the loss of rights or property due to failure to meet legal obligations.