An Annuity Consists of Payments of $700 Made at the Beginning

question 75

Short Answer

An annuity consists of payments of $700 made at the beginning of every quarter for 5 years. If the annuity earns 8% compounded semiannually, calculate present value.

---

Definitions:

King Philip's War

A conflict between American Indian inhabitants of present-day New England and English colonists and their Indian allies in 1675–1678.

Algonquians

A group of Native American peoples speaking Algonquian languages, originally inhabiting areas of North America from the Atlantic coast to the Great Lakes region.

Metacom

A Native American leader, also known as King Philip, who led a major rebellion against the colonists in New England in the 17th century.

Dominion of Virginia

Refers to the English colonial possession in North America that existed from 1607 (with the founding of Jamestown) until the American Revolution, known for its role in the development of American democracy and plantation economy.