What Is the Present Value of an Ordinary Annuity of $1000

question 48

Multiple Choice

What is the present value of an ordinary annuity of $1000 per month for 20 years discounted at 9% per annum (assuming monthly compounding) ?

• A)$9128.55
• B)$111 144.95
• C)$11 111.11
• D)$18 508.02

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, representing a portion of the corporate profits distributed among shareholders.

Market Price

The amount at which something can be bought or sold on a given market.

Gross Margin Percentage

A financial metric that measures a company's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold (COGS).

Return On Equity

A financial ratio indicating the profitability of a firm in relation to its shareholders' equity, measuring how much profit is generated from the equity.