Annuity Due: Your Inheritance Will Pay You $100,000 a Year

question 81

Multiple Choice

Annuity due: Your inheritance will pay you $100,000 a year for five years beginning now. You can invest it in a bank account that will pay 7.75 per cent annually. What is the present value of your inheritance? (Round to the nearest dollar.)

• A) $399,356
• B) $401,916
• C) $433,064
• D) $467,812

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Definitions:

Perceived Threat

An individual's subjective assessment of danger or harm that may arise from a situation or activity.

Racial Minority

A group of people identified by their race who are fewer in number compared to the dominant group in a society.

Hostile Environment

A setting or atmosphere where harassment, aggression, or unwelcoming behaviors make it difficult to work or live comfortably.

Unwarranted Conclusions

Conclusions reached without sufficient evidence or through erroneous reasoning, leading to potentially flawed judgments or beliefs.