How Much Must Be Invested Today in Order to Generate

question 77

Multiple Choice

How much must be invested today in order to generate a 5-year annuity of $1,000 per year,with the first payment 1 year from today,at an interest rate of 12%?

• A) $3,604.78
• B) $3,746.25
• C) $4,037.35
• D) $4,604.78

---

Definitions:

Data Type

A data type is a classification of data which tells the compiler or interpreter how the programmer intends to use the data. This classification determines the types of operations that can be performed on the data.

Fflush()

A standard library function in C used to flush a stream’s output buffer, forcing written data to be delivered.

Input Buffer

A temporary storage area utilized for holding input data before it is processed by a program, ensuring smooth and efficient data handling.

Format Modifiers

In programming, format modifiers are used with printf or scanf functions in C/C++ to specify the type and format of data to be inputted or outputted.