The FV_IFA for the Future Value of an Annuity Is

question 96

Multiple Choice

The FV_IFA for the future value of an annuity is 4.641 at 10% for 4 years.If we wish to accumulate $8,000 by the end of 4 years,how much should the annual payments be?

• A) $2,500
• B) $2,000
• C) $1,724
• D) $2,200

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Definitions:

Experimental Research

A scientific method that seeks to determine cause-and-effect relationships by manipulating one variable while keeping others constant to observe the effects on the manipulated variable.

Cause-And-Effect

The principle that everything happens due to specific reasons, and that an action (cause) results in a certain outcome (effect).

Control Group

The control group in an experiment is the group that does not receive the experimental treatment, serving as a baseline to compare the effects of the treatment.

Room Temperature

Room temperature typically refers to a comfortable ambient temperature for humans, generally considered to be around 20°C to 22°C (68°F to 72°F).