What Is the Present Value of a $600 Annuity Payment

question 20

Multiple Choice

What is the present value of a $600 annuity payment over 4 years if interest rates are 6 percent?

• A) $475.26
• B) $757.49
• C) $2,079.06
• D) $3,145.28

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Definitions:

Integrated Contracts

Legal documents that combine all agreements and terms related to a particular deal or relationship into a single, comprehensive document.

Merger Clause

A provision in a contract stating that the agreement is the complete and final agreement between the parties, superseding all oral or written agreements made prior.

Statute Of Frauds

A legal doctrine requiring certain contracts to be in writing and signed by the parties involved, to be enforceable.

Admission

The act of conceding to a point in an argument or acknowledging the truth of a claim, or the allowance into a place, organization, or institution.