If a 5-Year Regular Annuity Has a Present Value of $1,000,and

question 107

Multiple Choice

If a 5-year regular annuity has a present value of $1,000,and if the interest rate is 10 percent,what is the amount of each annuity payment?

• A) $240.42
• B) $263.80
• C) $300.20
• D) $315.38
• E) $346.87

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Definitions:

Power Distance

A cultural dimension that describes the extent to which less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.

Organizations

Structured groups of people working together to achieve common goals.

Unequally Distributed

The condition in which resources, power, or opportunities are not shared equitably among all parties or individuals involved.

Uncertainty-avoidance Cultures

Cultures that have a low tolerance for ambiguity and uncertainty, often favoring strict rules and conventions to minimize the unpredictability of social interactions.