What Is the Present Value of an Annuity of $4,000

question 56

Multiple Choice

What is the present value of an annuity of $4,000 received at the beginning of each year for the next eight years? The first payment will be received today,and the discount rate is 9% (round to nearest $1) .

• A) $36,288
• B) $35,712
• C) $25,699
• D) $24,132

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Definitions:

Classified Balance Sheet

A balance sheet that organizes assets and liabilities into subcategories such as current and long-term.

Subgroups

Subgroups are divisions or categories within a larger group, often used in organizing data, accounts, or various organizational structures for more detailed analysis.

Accounting Cycle

the series of steps followed in the accounting process, from the initial recording of transactions to the preparation of financial statements.

Adjusted Trial Balance

A record containing all accounts with their adjusted balances, utilized for the creation of financial statements.