You are going to pay $800 into an account at the beginning of each of 20 years. The account will
then be left to compound for an additional 20 years until the end of year 40, when it will turn into a
perpetuity.
You will receive the first payment from the perpetuity at the end of the 41st year. If the
account pays 14%, how much will you receive from the perpetuity each year (rounded to nearest
$1,000)?
A) $150,000 B) $160,000 C) $170,000 D) $140,000
B
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Generally, a finder of lost property has superior rights to that property against everyone, except
the original owner. Indicate whether the statement is true or false
U.S. Cars, a U.S. firm, owns property in Argentina. The government of Argentina seizes the property. U.S. Cars claims that this is confiscation. The government of Argentina claims that it is expropriation. The burden of proof lies with
a. the U.S. government. b. the government of Argentina. c. U.S. Cars. d. the U.S. Supreme Court.
When a company is in financial difficulty and cannot fully pay all of its creditors, the first lenders to be paid are the ________
A) stockholders B) sinking fund holders C) junior debtholders D) senior debtholders
In waiting line problems, the arrival rate is typically described by a discrete probability distribution known as ______ distribution.
A. Poisson B. binomial C. normal D. positive exponential