The Following Figure Shows a Graph That Compares the Present

question 32

Multiple Choice

The following figure shows a graph that compares the present values of two ordinary annuities of $800 quarterly as functions of the number of quarters. One annuity is at an annual rate of 6% compounded quarterly, and the other is at an annual rate of 9% compounded quarterly. Use the graph below to estimate the difference between the present values of these annuities for 25 years (100 quarters) . ​ ​

• A)$32,000
• B)$4,500
• C)$30,000
• D)$100
• E)$9,586

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Definitions:

Federal Poverty Level

a measure issued annually by the Department of Health and Human Services used to determine eligibility for various federal programs and benefits.

Incomes

The money received by an individual or organization, typically on a regular basis, for work, through investments, or from benefits.

Cultural Backgrounds

The cultural experiences, practices, languages, values, and worldviews that shape an individual's identity and perceptions, influenced by the society and community they are raised in.

Poverty

Poverty is a state or condition in which a person or community lacks the financial resources and essentials for a minimum standard of living.