What Is the Present Value of an Ordinary Annuity Paying

question 51

Multiple Choice

What is the present value of an ordinary annuity paying $1550 each year for 15 years,with an interest rate of 6.6 percent per annum?

• A)$19 589
• B)$16 528
• C)$14 481
• D)$13 568

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Definitions:

Indifference Map

A graphical representation showing combinations of goods among which a consumer is indifferent, indicating preferences and trade-offs.

Indifference Curve

A graph representing different bundles of goods among which a consumer is indifferent, showing trade-offs and preferences.

Consumer

An individual or organization that uses economic goods or services.

Criminal

A person who has committed a crime or has been legally convicted of a crime.