Find the Present Value of a Decreasing Annuity Necessary to Fund

question 104

Multiple Choice

Find the present value of a decreasing annuity necessary to fund withdrawals of $2,500 per quarter for 20 years, if the annuity earns 4% per year. (Assume end-of-period deposits and compounding at the same intervals as deposits) . Round your answer to the nearest cent.

• A) \(P V = \$ 137,220.52\)
• B) \(P V = \$ 175,298.95\)
• C) \(P V = \$ 75,500.91\)
• D) \(P V = \$ 45,113.88\)
• E) \(P V = \$ 75,501.91\)

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Definitions:

Nursing Diagnoses

Clinical judgments about individual, family, or community responses to actual or potential health problems/life processes, providing the basis for selecting nursing interventions.

Diagnostic Reasoning

The process by which healthcare professionals analyze clinical evidence and patient information to identify diseases or conditions.

Client's Response

The reaction or feedback of a client to a treatment, intervention, or service provided by a healthcare or service provider.

Clinical Inference

The process by which healthcare professionals draw conclusions about the health status of a patient based on available data and clinical experience.