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

question 12

Multiple Choice

What's the present value of a 4-year ordinary annuity of $2,250 per year plus an additional $2,400 at the end of Year 4 if the interest rate is 5%?

• A) $7,464.66
• B) $9,952.87
• C) $8,858.06
• D) $12,341.56
• E) $10,848.63

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Definitions:

Rubbermaid Corp.

A manufacturer specializing in household and commercial products, known for its innovative and durable plastic goods.

UCC

The Uniform Commercial Code governs sales contracts, negotiable instruments, bank deposits, and other commercial transactions in the U.S., aiming to standardize laws across states.

Battle of the Forms

Refers to a legal dispute arising from the exchange of conflicting terms and conditions in the contractual documents of the parties involved.

Unconscionability

Unconscionability involves contract terms that are excessively unfair or oppressive to one party, making enforcement unjust.