The Present Value of an Ordinary Annuity of $2,350 Each

question 86

Multiple Choice

The present value of an ordinary annuity of $2,350 each year for eight years, assuming an opportunity cost of 11 percent, is ________ .

• A) $18,800
• B) $12,093
• C) $27,869
• D) $ 1,020

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Definitions:

Angle

A measure of rotation or the inclination between two lines or surfaces that intersect at a point.

Degrees

A unit of measurement used in various contexts, such as angles in geometry, temperature scales, or levels of achievement in education.

Cabinet Oblique

A form of oblique projection used in technical drawing where the receding lines are drawn half as long as they are in reality to reduce the distortion of the angle.

Receding Axis

An imaginary line that moves away from the observer, often used in technical drawing to illustrate depth or perspective.