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:

Supervisor

An individual in charge of overseeing and guiding the work of a team or department within an organization.

Performance Measurement

The process of evaluating the efficiency and effectiveness of action, aimed at ensuring goals are being met or to facilitate improvement.

Feedback System

A process or mechanism for providing constructive comments, reactions, or inputs aimed at improving a situation, process, or individual performance.

HR Managers

Professionals responsible for overseeing the human resources department, focusing on policies, procedures, and systems related to employee management.