A consol paying $20 annually when the interest rate is 5 percent has a price of
A)$100.
B)$200.
C)$400.
D)$800.

Name: A consol paying $20 annually when the interest rate is 5 percent has a price of A)$100. B)$200. C)$400. D)$800.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The price of a consol can be found using the formula: price = annual payment / interest rate. Plugging in the values, we get price = 20 / 0.05 = 400. Therefore, the correct answer is option C.

A Consol Paying $20 Annually When the Interest Rate Is