What Is the Present Value of Four Annual Payments of $5,000

question 101

Multiple Choice

What is the present value of four annual payments of $5,000 at a discount rate of 12%?

• A)$14,560
• B)$15,187
• C)$15,550
• D)$15,935
• E)$16,000

---

Definitions:

R-134a System

A cooling system that utilizes R-134a refrigerant, commonly found in automotive air conditioning systems, known for its environmental benefits over older refrigerants.

Subcooling

Term used to describe the additional cooling of A/C refrigerant in the bottom of the condenser after it has changed from vapor to liquid below its freeze point. In physics, this is known as supercooling.

A/C System

A system in vehicles and buildings designed to cool the air, improving comfort for occupants.