Find the Present Value of the Ordinary Annuity

question 12

Multiple Choice

Find the present value of the ordinary annuity.
-Payments of $68 made quarterly for 10 years at 8% compounded quarterly

• A) $1872.41
• B) $1860.17
• C) $1829.38
• D) $667.63

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Definitions:

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders or proprietors.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Revenues

The total income generated from normal business operations and other activities over a period.

Assets

Resources owned by a business that are expected to provide future economic benefits.