You have decided to endow a Chair in Finance at Whatsamatta University
How much money must you deposit into the endowment account today if the Chair pays $125,000 per year forever (first payment one year from today) and is invested at a rate that pays out 4.50% per year?
A) $277,777.78
B) $2,902,777.78
C) $2,777,777.78
D) There is not enough information to answer this question.
C
Explanation: C) PV = PMT/r = $125,000/0.045 = $2,777,777.78.
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With respect to having the court set aside a contract on the basis of undue influence, which of the following is false?
A) If a client transferred property to his lawyer and later claimed the transfer was due to undue influence, the law would presume the transfer was due to undue influence. B) If the court presumes the existence of undue influence, the person asking for the return of the property will automatically get it back. C) A contract made in favour of a dominant person who exerted undue influence over the weaker party is voidable at the option of the weaker party. D) If you are a dominant person in relation to an aged relative who wants to sell you his house below market value, you should insist that the aged relative receive independent legal advice. E) Where undue influence is established, the resulting contract is voidable, not void.
The number of cumulative exposures achieved in a given time period is called opportunities to see (OTS)
Indicate whether the statement is true or false