How Much Must Be Invested Today in Order to Generate

question 77

Multiple Choice

How much must be invested today in order to generate a 5-year annuity of $1,000 per year,with the first payment 1 year from today,at an interest rate of 12%?

• A) $3,604.78
• B) $3,746.25
• C) $4,037.35
• D) $4,604.78

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Definitions:

Happiness

A state of well-being and contentment characterized by positive emotions ranging from satisfaction to intense joy.

Stress Response

The body's reaction to a challenge or demand, characterized by physiological and psychological changes aimed at adapting to stressors.

Rejection

The act of refusing to accept, consider, submit to, take for some purpose, or use.

Physical Pain

An uncomfortable sensation and emotional experience linked to actual or potential tissue damage.