What Is the Present Value Today of an Ordinary Annuity

question 11

Multiple Choice

What is the present value today of an ordinary annuity cash flow of $4,000 per year for thirty years at an interest rate of 6.0% per year?

• A)$120,000.00
• B)$55,059.32
• C)$45,139.89
• D)$32,270.87

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Definitions:

Prescribing Laws

The legal statutes and regulations that dictate how medications can be legally prescribed and dispensed.

Prisoner's Dilemma

A fundamental problem in game theory that demonstrates why two individuals might not cooperate, even if it appears that it is in their best interest to do so.

Social Dilemma

A situation in which individual self-interest conflicts with collective interest, leading to challenges in cooperative behavior and optimal societal outcomes.

Uncertainty Threat

The feeling of discomfort or stress caused by not knowing or by having doubts about outcomes or intentions.