Calculate the Present Value of a Deferred Annuity of 20

question 126

Multiple Choice

Calculate the present value of a deferred annuity of 20 annual payments of $25,000 each The interest rate is 8.5% compounded annually and the first payment will be made in six years.

• A) $306,472
• B) $211,760
• C) $157,339
• D) $145,013
• E) $104,289

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Definitions:

Transtheoretical Model

A model in psychotherapy that assesses an individual's readiness to act on a new healthier behavior, and provides strategies, or processes of change to guide the individual through the stages of change to Action and Maintenance.

Stages of Change

A model that describes the process by which individuals motivate themselves and move toward personal behavior change in several distinct steps.

Ethical Reasoning

The process of evaluating what is right or wrong in a moral sense, often leading to moral judgments and actions based on ethical principles.

Moral Development

The process of learning, understanding, and applying ethical principles and values, shaping one's character and actions.