What Is the Present Value of an Ordinary Annuity Consisting

question 31

Multiple Choice

What is the present value of an ordinary annuity consisting of 5 annual payments of $1,000 with an interest rate of 8% p.a. ,with the first payment occurring in 5 years' time?

• A)$4,918.64
• B)$4,992.71
• C)$2,717.37
• D)$3,696.95

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Definitions:

Emotional Stability

A personality trait signifying the extent to which a person’s mood is unaffected by external events, often considered synonymous with low neuroticism.

Personality Change

Involves alteration in an individual's personality traits or overall personality structure, which can occur due to various life experiences or interventions.

Workplace Productivity

A measure of how efficiently and effectively a workforce converts inputs into outputs, often seen as critical for business success.

Extraversion

A quality present in a person that involves being friendly, gregarious, confident, and showing a strong ability to express feelings.