Chancellor Ltd

question 26

Multiple Choice

Chancellor Ltd. sells an asset with a $1 million fair value to Sophie Inc. Sophie agrees to make 6 equal payments, one year apart, commencing on the date of sale. The payments include principal and 6% annual interest. Compute the annual payments.

• A)$166,651.
• B)$135,252.
• C)$203,351.
• D)$191,852.We compute the annual payments in the present value of an annuity due formula, where the present value is $1 million, n=6 and i=6%.The discount factor (from table 6) is 5.21236.Dividing $1 million by this factor gives payments of $191,852.

---

Definitions:

Tenant Satisfaction

The level of contentment expressed by tenants towards their living conditions or rental experience.

Level of Satisfaction

A measure of how content an individual is with various aspects of life or services.

Questionnaire

A set of written questions used for collecting information from respondents.

Hours of Television

The total amount of time spent watching television over a certain period.