Option E. Ownership. The term utility refers to the level of satisfaction a consumer derives from using goods. Utility can be categorized into four types: form, place, possession, and time. Based on the given choices, the last option, ownership, is the correct answer, meaning the other four options are incorrect.
Answer:
PV= $230,148.09
Explanation:
Considering the following details:
You will get 27 yearly payments of $22,500. The initial payment is set to begin 7 years from now with an interest rate of 5.1 percent.
First, we will determine the future value of these payments using this formula:
FV= {A*[(1+i)^n-1]}/i
A= annual payment= 22,500
n= 27
i= 0.051
FV= {22,500*[(1.051^27)-1]}/ 0.051
FV= $1,248,819.52
Next, we will find the present value:
PV= FV/(1+i)^n
PV= 1,248,819.52/ (1.051^34)
PV= $230,148.09
