What Is the Future Value of a 5-Year Ordinary Annuity

question 42

Multiple Choice

What is the future value of a 5-year ordinary annuity with annual payments of R200, evaluated at a 15 percent interest rate?

• A) R670.44
• B) R842.91
• C) R1,169.56
• D) R1,522.64
• E) R1,348.48

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Definitions:

ANOVA F Statistic

A statistic used in Analysis of Variance (ANOVA) tests to determine if there are significant differences between the means of three or more groups.

Significance Level

A threshold chosen by the researcher which the p-value must be below in order to reject the null hypothesis.

Explanatory Variables

Variables in a statistical model that are used to predict or explain changes in the dependent variable.

Deaths

The occurrence of the permanent cessation of all vital functions in a living organism, marking the end of life.