If the Present Value of an Ordinary, 8-Year Annuity Is

question 139

Multiple Choice

If the present value of an ordinary, 8-year annuity is $12,500 and interest rates are 9.1 percent, what is the present value of the same annuity due?

• A) $13,637.50
• B) $13,941.90
• C) $14,114.80
• D) $14,211.90

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Definitions:

Middle-aged White Men

Males of Caucasian ethnicity typically in the age range of 45 to 65 years.

Intrinsic Motivator

An internal drive that compels individuals to act based on inner rewards, passion, or interest, without external incentives.

Intellectual Ability

The capacity to think, learn, and make sense of the world through mental processes, reasoning, and problem-solving.

Peer Pressure

Influence from members of one's peer group to adopt certain behaviors, values, or conform to group norms.