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What Is the Present Value of an Annuity of $4,000

question 56

Multiple Choice

What is the present value of an annuity of $4,000 received at the beginning of each year for the next eight years? The first payment will be received today,and the discount rate is 9% (round to nearest $1) .


Definitions:

Operating System

The software that manages the hardware and software resources of a computer system and provides common services for computer programs.

Large Profits

Substantial earnings exceeding the costs of production and operation of a business.

Innovation

The process of creating new ideas, products, or methods, which can significantly change market dynamics or societal practices.

Annual Interest Rate

The percentage of the principal amount of a loan that is charged as interest to the borrower for one year.

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