What Is the Present Value of a $1,000 Per Year

question 83

Multiple Choice

What is the present value of a $1,000 per year annuity for five years at an interest rate of 12%?

• A)$6,352.85
• B)$3,604.78
• C)$567.43
• D)$2,743.28

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Definitions:

Indicator Variable

A binary variable that takes the value of 0 or 1 to indicate the absence or presence of some categorical effect or attribute.

Logistic Regression

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Mortality Benefit

The observed survival advantage or reduction in death rates from a particular treatment or intervention.