If the Future Value of an Ordinary, 5-Year Annuity Is

question 135

Multiple Choice

If the future value of an ordinary, 5-year annuity is $100,000 and interest rates are 5 percent, what is the future value of the same annuity due?

• A) $95,238.10
• B) $100,000.00
• C) $105,000.00
• D) $107,000.00

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Definitions:

Tabula Rasa

A theory that individuals are born without built-in mental content, and therefore all knowledge comes from experience or perception.

Blank Slate

The theory that individuals are born without built-in mental content, and all knowledge comes from experience or perception.

Specific Knowledge

Knowledge that is detailed, specialized, and particular to a specific field or subject matter.

Hobbes

Refers to Thomas Hobbes, a 17th-century English philosopher known for his political theories, notably the concept of social contract.