The Present Value of a Promise to Pay $5, 000

question 146

Multiple Choice

The present value of a promise to pay $5, 000 every year forever when the prevailing interest rate is 10 percent equals

• A)$5, 000
• B)$50, 000
• C)$100, 000
• D)$250, 000
• E)$500, 000

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Definitions:

Professional Counselors

Licensed professionals who offer guidance and support to individuals, couples, and families dealing with emotional, mental, and behavioral issues.

Crisis Intervention

A type of emergency psychological care aimed at assisting individuals in a crisis situation to restore equilibrium to their biopsychosocial functioning and minimize potential psychological trauma.

Prevention

Measures or actions taken to reduce the likelihood of an event or condition from occurring.

Establishing Equilibrium

The process of returning to a state of balance or stability after a disturbance.