Mike Carlson Will Receive $12,000 a Year from the End

question 24

Multiple Choice

Mike Carlson will receive $12,000 a year from the end of the third year to the end of the 12th year (10 payments) . The discount rate is 10%. The present value today of this deferred annuity is ________.

• A) $61,450
• B) $42,185
• C) $60,909
• D) $55,379

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Definitions:

Hyperconsumption

Describes an excessive and unsustainable level of consumption that surpasses what is necessary for a comfortable lifestyle, often driven by consumerism and materialism.

Alienation

A condition in social relationships reflected by a decrease in the sense of personal identification with the products of one's work or disenchantment with societal norms.

Mode of Production

describes the varied ways that societies gather or produce the means of their subsistence, focusing on the combination of productive forces and relations of production.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.