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Financial Forensics · End Term · 1 Sept 2024 · May 2024 term · Set QDB3

Question 20: An insurance settlement offer includes annual payments o…

Question 20

+1 markOne correct option

An insurance settlement offer includes annual payments of ₹ 36,000, ₹ 42,000, and ₹ 50,000 over the next three years, respectively, with the first payment being made one year from today. What is the minimum amount you should accept today as a lump sum settlement if your discount rate is 7 percent?

  1. A

    ₹ 111,144.18

  2. B

    ₹ 105,000.10

  3. C

    ₹ 118,924.27

  4. D

    ₹ 114,556.88

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Correct answer

  • A

    ₹ 111,144.18

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Question 20 of 41 in the IIT Madras BS Financial Forensics (Financial Forensics) End Term paper sat on 1 Sept 2024, in the May 2024 term (IIT M DEGREE AN EXAM QDB3 01 Sep 2024). It carries 1 mark.

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