What Is the Present Value of a Four-Year Annuity of $100

question 46

Multiple Choice

What is the present value of a four-year annuity of $100 per year that begins 2 years from today (end of year 1) if the discount rate is 9%?

• A)$297.22
• B)$323.97
• C)$356.85
• D)$272.68

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Definitions:

Mixed Strategy

A game theory strategy where a player chooses between all possible actions at specified probabilities.

Expected Payoff

Expected payoff is the anticipated value of an investment or decision under uncertainty, calculated as the weighted average of its possible outcomes.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal, considering the strategies of other players, and no player has anything to gain by changing only their own strategy.

Pure Strategies

In game theory, a strategy where a player consistently follows a specific action or plan whenever a particular situation arises.