What Is the Present Value of a $300 Annuity Payment

question 89

Multiple Choice

What is the present value of a $300 annuity payment over 5 years if interest rates are 8 percent?

• A) $204.17
• B) $440.80
• C) $1,197.81
• D) $1,938.96

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Definitions:

Limited Partnerships

Business arrangements where at least one partner has unlimited liability while others have liability limited to the extent of their investments.

General Partners

Individuals in a partnership who are responsible for managing the business and are personally liable for the partnership's debts.

Limited Liability

A legal structure where a company's owners are protected from personal responsibility for the company’s debts or liabilities, beyond the amount of their investment in the company.

Voluntary Contract

An agreement entered into freely by two or more parties, where each party has the ability to accept or reject the terms of the agreement.