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

---

Definitions:

F.O.B.

F.O.B. (Free On Board) is a shipping term used in international trade to indicate that the seller is responsible for the goods until they are loaded on a vessel at the specified location, after which the buyer assumes risk.

Market Price

The current price at which an asset or service can be bought or sold in a given market.

Contract Cancellation

The legal termination of a contract's obligations by one or more of its parties.

Sales Contracts

Agreements between two parties where the seller agrees to deliver a product or service to a buyer for a specified price.