What Is the Present Value Today of an Ordinary Annuity

question 21

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 if the first cash flow is six years from today?

• A)$120,000.00
• B)$55,059.32
• C)$45,138.89
• D)$41,143.53

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Definitions:

Detoxification

Systematic and medically supervised withdrawal from a drug.

Antianxiety Drugs

Psychotropic drugs that help reduce tension and anxiety. Also called minor tranquilizers or anxiolytics.

Alcohol Withdrawal

A syndrome that occurs in individuals who have been heavily drinking over a long period of time and then suddenly stop or significantly reduce their alcohol intake.

Cognitive-behavioral Treatment

A type of psychotherapy that focuses on changing negative patterns of thought and behavior into positive ones to treat various mental health conditions.