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You Have Received a Settlement Offer from a Restaurant for Your

question 25

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You have received a settlement offer from a restaurant for your medical expenses due to food poisoning.The restaurant will pay you $110,000 in one lump sum two years from now.You can earn 10% on your investments.The present value of $1 for 2 periods at 10% is 0.826.The present value of an ordinary annuity of $1 for 2 periods at 10% is 1.736.The present value of the settlement offer is closest to:


Definitions:

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The sufficient circulation of blood through the body, which is essential for health and proper function of organs.

Social Readjustment Rating Scale

A scale that attempts to measure the stress load we carry and predict the likelihood of stress-induced health breakdowns.

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