You Inherited an Oil Well That Will Pay You $12,000

question 138

Multiple Choice

You inherited an oil well that will pay you $12,000 per year for 25 years,with the first payment being made today.If you think a fair return on the well is 7.5%,how much should you ask for it if you decide to sell it?

• A) $178,306.55
• B) $171,116.77
• C) $135,167.87
• D) $143,795.60
• E) $175,430.63

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Definitions:

Present

The period of time now occurring or being considered, often distinguished from the past and future.

Past

Refers to all events, experiences, and actions that have occurred before the present time, shaping historical context and individual or collective memories.

Future

The time or a period of time following the moment of speaking or writing; time regarded as still to come.

Mindfulness

The practice of being aware and present in the moment without judgment.