What Is the Present Value of an Annuity of $12

question 122

Multiple Choice

What is the present value of an annuity of $12 received at the end of each year for seven years? Assume a discount rate of 11%.The first payment will be received one year from today (round to nearest $1) .

• A) $25
• B) $40
• C) $57
• D) $118

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Definitions:

Directly Reinforced

Refers to behaviors that increase in frequency as a direct result of being followed by a rewarding stimulus.

Bandura's Research

Studies conducted by Albert Bandura that focus on social learning theory, demonstrating that people can learn through observation and imitation.

Developmental Stages

The distinct phases of growth and development that individuals go through from infancy to adulthood, each with its own challenges and milestones.

Old Age

The later stage of life, typically considered to begin in the late 60s or early 70s, marked by increased physical, emotional, and cognitive changes.