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

---

Definitions:

Stereotypical Words

Language that reflects generalized and oversimplified beliefs or impressions about a particular group of people or things.

Spontaneous Speech

The natural flow of speaking without premeditation, reflecting the speaker's immediate thoughts or feelings.

Hallucinations

Sensory experiences or perceptions that have no basis in reality and occur without any external stimulus.

Delirium

An acute, often fluctuating state of confusion, characterized by altered cognition, attention, and awareness.