What Is the Present Value of a 5-Year Ordinary Annuity

question 21

Multiple Choice

What is the present value of a 5-year ordinary annuity with annual payments of $200,evaluated at a 15 percent interest rate?

• A) $670.43
• B) $842.91
• C) $1,169.56
• D) $1,348.48
• E) $1,522.64

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Definitions:

Vitruvius

An ancient Roman architect and engineer, known for his treatise "De architectura" which outlines the principles of classical architecture.

Vienna Genesis

An illuminated manuscript, essentially a fragment of a 6th-century Greek copy of the Book of Genesis, known for its early Byzantine miniatures.

Pages

In historical contexts, pages were young attendants or trainees serving nobility, often part of their education in courtly manners and knightly training.

Purple

A color that has historically been associated with royalty, nobility, and spirituality due to the rarity and cost of the purple dye which was traditionally made from sea snails.