What Is the Value Today of Receiving Five Annual Payments

question 74

Multiple Choice

What is the value today of receiving five annual payments of $500,000,beginning one year from now,assuming an 11% discount rate?

• A)$2,500,000.
• B)$2,225,000.
• C)$1,847,950.
• D)$2,115,270.

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Definitions:

Notification

The act or process of officially informing someone about something.

Unreasonable Means

Methods or tactics that are considered excessive, unjust, or not in accordance with logic or reason, often used in legal contexts to describe actions that go beyond what is fair or appropriate.

Acceptance

In the context of contract law, when the terms of an offer are accepted, it leads to the formation of a contract that is enforceable by law.

Effective

Producing a decided, decisive, or desired effect or result; in full force.