The Present Value of an Annuity of $5,000 to Be

question 67

Multiple Choice

The present value of an annuity of $5,000 to be received at the end of each of the nextevery six months for over 6 years at a 4% annual rate would be:

• A)$26,210
• B)$52,875
• C)$3,950
• D)none of the above

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Definitions:

Consolidated Financial Statements

Financial reports that combine the accounting information of a parent company with its subsidiaries into one document.

International Subsidiary

An international subsidiary is a company that is wholly or partially owned by another company, called the parent company, and is located in a country different from where the parent company is situated.

Debt Securities

Financial instruments indicating a debt owed by the issuer to the holder, typically in the form of bonds, bills, or notes.

Available-for-sale Securities

Financial assets not classified as held-to-maturity or trading securities, and can be sold in the market.