The Present Value of an Annuity Stream of $100 Per

question 2

Multiple Choice

The present value of an annuity stream of $100 per year is $614 when valued at a 10% rate.By approximately how much would the value change if these were annuities due?

• A) $10
• B) $61.40
• C) $10 ×Number of years in annuity stream
• D) $6.14 × Number of years in annuity stream

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Definitions:

Double-masked Design

A study design in which neither the participants nor the researchers know who belongs to the control group and who belongs to the experimental group, minimizing bias.

Experimenter Expectancies

The potential influence that a researcher's beliefs, hopes, or biases can have on the outcome of an experiment, often impacting the behavior being studied.

Rosenthal Effect

The phenomenon in which the higher expectations placed upon individuals either by themselves or others lead to better performance; also known as the Pygmalion effect.

Quasi-experimental Designs

Research methods that aim to evaluate interventions without using random assignment, often by comparing groups that naturally exist.