Estimate the Present Value of an Annuity If Payments Are

question 245

Multiple Choice

Estimate the present value of an annuity if payments are $1,500 monthly for 15 years and the account earns interest at the rate of 10% per year compounded continuously. Round your answer to the nearest dollar. ​

• A) $124,516
• B) $124,708
• C) $131,206
• D) $126,483
• E) $139,837

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Definitions:

Grapevine Method

An informal communication network within an organization, through which information and rumors circulate.

Employee Benefits

Additional compensation such as vacation, retirement plans, profit-sharing, health insurance, gym membership, child and elder care, and tuition reimbursement, paid entirely or in part by the company.

Formal Communication

The exchange of information in a structured format through officially designated channels and protocols.