You Are Scheduled to Receive Annual Payments of $10,000 for Each

question 111

Multiple Choice

You are scheduled to receive annual payments of $10,000 for each of the next 25 years. Your discount rate is 8.5%. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?

• A) $8,699
• B) $9,217
• C) $9,706
• D) $10,000
• E) $10,850

---

Definitions:

Experienced

Possessing knowledge or skill in a particular area or field as a result of involvement or exposure over time.

Graphics

Visual elements such as charts, diagrams, and illustrations used to supplement or convey information.

Report

A structured account or document detailing the findings or results of a specific investigation, study, or analysis.

Confuse Readers

To present information in a way that makes it difficult for the audience to understand or follow the intended message.