​Consider a Fixed­payment Security That Pays $100 at the End

question 17

Multiple Choice

​Consider a fixed­payment security that pays $100 at the end of every year for five years.If the annual rate of discount is 7 percent, the present value of the security is

• A)​$142.64.
• B)​$410.02.
• C)​$789.34.
• D)​$999.63.

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Definitions:

Occipital Lobe

The region of the cerebral cortex at the back of the brain, responsible for processing visual information.

Parietal Lobes

Regions of the brain located behind the frontal lobes, involved in processing sensory information such as touch and taste.

Sense of Touch

The ability to perceive external stimuli through receptors in the skin, facilitating the sensation of texture, temperature, and pain.

Corpus Callosum

A thick band of nerve fibers that divides the cerebral cortex lobes into left and right hemispheres, facilitating communication between the two sides of the brain.