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:

Expressiveness

The ability or quality of effectively conveying thoughts, feelings, or emotions through verbal or non-verbal communication.

Convergent Thinking

A cognitive process that involves focusing on finding a single, correct solution to a problem, often through the application of logic and rules.

Divergent Thinking

is a thought process or method used to generate creative ideas by exploring many possible solutions.

Synergistic Fashion

A manner of working together in which the combined effect is greater than the sum of individual efforts.