Calculate the Present Value of a Growing Annuity Given the Following

question 196

Multiple Choice

Calculate the present value of a growing annuity given the following information: annual cash flows = $5,000; cash flow growth rate = 2%; required rate of return = 7%; timeframe = 40years.

• A) $82,255
• B) $83,255
• C) $84,255
• D) $85,255
• E) $86,255

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Definitions:

Amino Acid

Organic compounds that serve as the building blocks of proteins, necessary for the growth and repair of body tissues.

Introns

Non-coding sections of DNA or RNA that are removed before the final mRNA is formed in eukaryotic cells.

Nucleotide Sequences

The order of nucleotides in a DNA or RNA molecule that determines genetic information.

Double-stranded DNA

The normal form of DNA, consisting of two parallel strands of nucleotides wound around each other in a helix.