What Is the Present Value of an Annuity of $120

question 29

Multiple Choice

What is the present value of an annuity of $120 received at the end of each year for 11 years? Assume a discount rate of 7%.The first payment will be received one year from today (round to nearest $1) .

• A) $250
• B) $400
• C) $570
• D) $900

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