What's the Present Value of a Perpetuity That Pays $3,000

question 156

Multiple Choice

What's the present value of a perpetuity that pays $3,000 per year if the appropriate interest rate is 5%?

• A) $60,000.00
• B) $47,400.00
• C) $71,400.00
• D) $63,000.00
• E) $55,200.00

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Definitions:

Mindfulness

A mental practice of focusing one's awareness on the present moment while calmly acknowledging and accepting one's feelings, thoughts, and bodily sensations.

ACT Methods

Techniques and practices derived from Acceptance and Commitment Therapy, focusing on accepting negative thoughts without judgment and committing to actions that align with one's values.

Experiential Avoidance

A mental phenomenon in which people try to steer clear of thoughts, emotions, memories, and bodily sensations that cause them internal discomfort.

Mindfulness

A mental state achieved by focusing one's awareness on the present moment, while calmly acknowledging and accepting one's feelings, thoughts, and bodily sensations, used as a therapeutic technique.