Martha Receives $100 on the First of Each Month

question 49

Multiple Choice

Martha receives $100 on the first of each month.Stewart receives $100 on the last day of each month.Both Martha and Stewart will receive payments for five years.The discount rate is 8 percent,compounded monthly.What is the difference in the present value of these two sets of payments?

• A)$32.88
• B)$34.29
• C)$92.60
• D)$108.00
• E)$112.50

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Definitions:

Cultural Dimension

An aspect of culture that can be measured relative to other cultures, such as individualism vs. collectivism, that helps in understanding the differences and interactions between cultures.

Dimension Of Culture

An aspect or characteristic that differentiates cultures from each other, such as individualism vs collectivism or power distance.

Power Distance

A cultural dimension that describes the extent to which members of a society accept and expect power to be distributed unequally.

Individualism

A social theory favoring freedom of action for individuals over collective or state control.