What's the Present Value of a 4-Year Ordinary Annuity of $2,250

question 106

Multiple Choice

What's the present value of a 4-year ordinary annuity of $2,250 per year plus an additional $3,000 at the end of Year 4 if the interest rate is 5%?

• A) $8,509
• B) $8,957
• C) $9,428
• D) $9,924
• E) $10,446

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Definitions:

Bargaining Process

A negotiation method between two or more parties to reach a mutually acceptable agreement on various matters.

Contract Rejection

Refers to a party's refusal to accept or acknowledge a contractual agreement, leading to termination or renegotiation.

Arbitrator

An arbitrator is a neutral third party who is appointed to resolve a dispute between two or more parties outside of the court system.

Union Members

Individuals who belong to a labor union, an organization that represents the collective interests of workers in negotiations with employers.