You Will Receive Annual Payments of $2,400 at the End

question 39

Multiple Choice

You will receive annual payments of $2,400 at the end of each year for 15 years.The first payment will be received in year 6.What is the present value of these payments if the discount rate is 7 percent?

• A)$11,465.20
• B)$12,018.52
• C)$13,299.80
• D)$15,585.16
• E)$16,856.60

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Definitions:

Common Iliac Artery

A large artery that divides into the internal and external iliac arteries, supplying blood to the pelvis and lower limbs.

Bifurcation

Bifurcation refers to the process or point at which a structure divides into two branches or parts, often used in reference to blood vessels or branching patterns in biology.

Abdominal Aorta

The largest artery in the abdominal cavity that delivers oxygen-rich blood to the abdominal organs, pelvis, and legs.

Thoracic Wall

The bony and muscular structures forming the chest cavity that protect thoracic organs and assist in breathing.