What Is the PV of an Ordinary Annuity with 5

question 89

Multiple Choice

What is the PV of an ordinary annuity with 5 payments of $4,700 if the appropriate interest rate is 4.5%?

• A) $16,806
• B) $17,690
• C) $18,621
• D) $19,601
• E) $20,633

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Definitions:

Reification

The cognitive error of treating an abstract concept as if it were a real, concrete event or physical entity.

Human Nature

The inherent characteristics, including ways of thinking, feeling, and acting, that all humans tend to have naturally.

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Sequential Method

A systematic approach or procedure that follows a specific order or sequence, often used in scientific research or problem-solving.