Drew Receives an Inheritance That Pays Him $54,000 Every Three

question 90

Multiple Choice

Drew receives an inheritance that pays him $54,000 every three months for the next two years. Which of the following is closest to the present value (PV) of this inheritance if the interest rate is 8.9% (EAR) ?

• A) $314,366
• B) $471,549
• C) $392,957
• D) $432,000

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European Union

A political and economic union of 27 member states that are located primarily in Europe, established to foster economic cooperation and has its own currency, the euro, used by 19 of its member states.

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Lanham Act

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Magnuson-Moss Warranty Act

A federal law enacted in 1975 to protect consumers from deceptive warranty practices, requiring warranties for consumer products to be clearly disclosed.