You Have an Annuity of Equal Annual End-Of-The-Year Cash Flows

question 109

Multiple Choice

You have an annuity of equal annual end-of-the-year cash flows of $500 that begin two years from today and last for a total of ten cash flows.Using a discount rate of 4%,what are those cash flows worth in today's dollars?

• A)$3,899.47
• B)$4,055.45
• C)$4,380.24
• D)$5,000.00

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Definitions:

Human Genome

Complete sequence of genes in the human body.

Genes

Units of heredity made up of DNA, located on chromosomes, that carry the instructions for the development, functioning, growth, and reproduction of all known organisms.

Analogous

Similar or comparable in certain respects, typically allowing for a comparison to be made.

Ovulation

The phase in the menstrual cycle when a mature egg is released from the ovary, making it available for fertilization.