What Is the Present Value of an Ordinary Annuity Consisting

question 46

Multiple Choice

What is the present value of an ordinary annuity consisting of 15 annual payments of $50 with an interest rate of 3.5% p.a.compounded quarterly?

• A)$575.87
• B)$3,486.36
• C)$1,159.29
• D)$2,326.24

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Definitions:

Mean Age

The average age of all individuals in a particular group or population, calculated by summing their ages and dividing by the number of individuals.

Finite Population Correction Factor

A statistical adjustment applied when sampling without replacement from a finite population to improve the accuracy of estimations and reduce sampling error.

Mean Salary

The average wage or salary calculated by summing all salaries and dividing by the number of salaries.

Normal Distribution

This refers to a probability distribution where symmetry around the mean indicates higher frequency of data points near the mean than those far from it.