Find the annual interest rate that would create a perpetual cash flow stream of $15,000 when the present value of the asset is $100,000.
A. 0.15 percent
B. 0.1765 percent
C. 15 percent
D. 17.65 percent
Answer: C
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Which of the following is an example of negotiation costs?
A) Isabel knows that other neighbors' sleep patterns must also be affected by the howling dogs in her neighborhood and sets out to find those neighbors. B) Isabel is bound and determined to to find out which of her neighbors owns the howling dogs that are preventing her from getting a full night's slee
Historically, one of the most common reasons for countries to impose tariffs was
A) to protect their national security. B) to raise revenue for the government. C) to eliminate unemployment. D) to counter inflation. E) None of the above.
In Figure 3-4 above, an equilibrium income of 2000 occurs when planned autonomous spending is
A) 750. B) 800. C) 1250. D) 250.
Premiums based on experience ratings
a. are uniform across age groups. b. are based on the loss experience of the insured. c. vary depending on the income of the insured. d. are illegal in most states in the U.S. e. are only used in property-casualty insurance underwriting.