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:

Illegal Term

A provision in a contract or agreement that is not enforceable by law because it violates legal statutes or principles.

Sale of Business

The process of transferring ownership of a business from one party to another.

Restrictive Covenant

A clause in a contract which limits certain actions of the parties, often used in employment and real estate agreements.

Restraint of Trade

Legal contracts or agreements that restrict one party's right to engage freely in business or trade, intended to protect business interests.