Calculate the Present Value of an Ordinary Annuity Consisting of Payments

question 158

Multiple Choice

Calculate the present value of an ordinary annuity consisting of payments of $5,000 each, made at the end of every three months for six years. Assume that money is worth 7.2% compounded quarterly.

• A) $46,070
• B) $76,295
• C) $96,748
• D) $105,186
• E) $122,517

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Definitions:

Permeable

describes a material or membrane that allows liquids or gases to pass through it.

Sodium Ions

Positively charged atoms of sodium that play critical roles in the body, including regulating blood pressure, fluid balance, and nerve function.

Cerebrospinal Fluid

A clear, colorless body fluid found in the brain and spinal cord, acting as a cushion for the brain's cortex, providing basic mechanical and immunological protection to the brain inside the skull.

Saltatory Transmission

The rapid propagation of nerve impulses along myelinated axons from one Node of Ranvier to the next, increasing the speed of electrical signal transmission.