Future and Present Value of an Annuity Due If You

question 84

Multiple Choice

Future and Present Value of an Annuity Due If you start making $25 monthly contributions today and continue them for 4 years, what's their future value if the compounding rate is 6 percent APR? What is the present value of this annuity?

• A) $101.26, $99.26
• B) $1,352.45, $1,064.51
• C) $1,359.21, $1,069.83
• D) $2,171.02, $1,516.03

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Definitions:

Higher Power

A spiritual force believed to be greater than oneself, often associated with faith and recovery from addiction.

Acculturation

The process by which a person or group from one culture comes to adopt the practices and values of another culture while still maintaining their own cultural identity.

Assimilation

The process by which individuals or groups adopt the customs and attitudes of another culture, often losing aspects of their original culture in the process.