The Present Value of an Annuity Stream of $100 Per

question 21

Multiple Choice

The present value of an annuity stream of $100 per year is $614 when valued at a 10 percent rate.By approximately how much would the value change if these were annuities due?

• A)An increase of $10
• B)An increase of $61
• C)An increase of $100
• D)Unknown without knowing number of payments.

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Definitions:

Depression

A common mental health disorder characterized by persistent sadness, lack of interest or pleasure, feelings of guilt or low self-worth, and other symptoms.

Women

Female adults; in the context of health and social sciences, often the subject of specialized studies owing to gender-specific health, social, or psychological issues.

Negative Feelings

Unpleasant emotions such as sadness, anger, and fear that may affect an individual's psychological well-being.

Coping

The process of actively managing and attempting to overcome personal and interpersonal issues and stress.