What Is the Present Value of a Six-Year, $5,000 Per

question 65

Multiple Choice

What is the present value of a six-year, $5,000 per year annuity at a discount rate of 10 percent?

• A)$21,776.30
• B)$3,371.91
• C)$16,760.78
• D)$18,327.82

---

Definitions:

Financing Statement

A document filed to give public notice that a lender has a security interest in a borrower's personal property.

Effective

In force or operational; commonly refers to the date on which a law, regulation, or agreement is applied or becomes operational.

Secured

Pertaining to a loan or obligation that is backed by collateral to reduce the risk of lending.

Security Interest

A legal claim or liens on property as collateral for the payment of a debt or performance of some other obligation.