Robert Wants to Have $2,300 at the END of Every

question 102

Multiple Choice

Robert wants to have $2,300 at the END of every three months for 8 years. The bank pays 8% interest, compounded quarterly. Robert calculates that the present value of the ordinary annuity is $53,977.16. What would be the present value if payments were to be received at the BEGINNING of every period rather than the END? (Use Table 12-2 from your text)

• A) $52,016.20
• B) $55,056.71
• C) $55,344.83
• D) $55,986.21

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Definitions:

Cornwallis

A British Army officer and colonial administrator, Charles Cornwallis is best known for his role in the American Revolutionary War, where he surrendered to George Washington at Yorktown.

Yorktown

The site of the decisive battle of the American Revolutionary War in 1781, where British forces surrendered, effectively ending the war.

Positive Electric Charges

Charges carried by protons, contributing to electrical phenomena and interactions according to the principles of electromagnetism.

Current Flows

The movement of electric charge carriers, such as electrons, through a conductor or circuit.