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:

July

The seventh month of the Gregorian calendar year.

Budgeted Purchases

The estimated amount of goods or materials a company plans to buy over a certain period, often part of the budgeting process.

Units Manufactured

The total number of units produced by a company in a specific period, reflecting the company's production volume.

Year

refers to a period of twelve months used for financial, business, and calendar purposes.