What Is the Present Value of a Six-Year,$5,000 Per Year

question 93

Multiple Choice

What is the present value of a six-year,$5,000 per year annuity at a discount rate of 10%?

• A)$21,776.30
• B)$3,371.91
• C)$16,760.78
• D)$18,327.82

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Definitions:

Dependent Variable

In statistical and mathematical analysis, the variable whose value is subject to the influence of another variable.

Horizontal Axis

In graphs and charts, this axis typically represents the independent variable or time period under examination.

Vertical Axis

The “up-down” or “north-south” measurement line on a graph or grid.

After-Tax Income

The amount of income left to an individual or business after all federal, state, and local taxes have been applied.