The Present Value of a $1 Annuity Payable Over 25

question 66

Multiple Choice

The present value of a $1 annuity payable over 25 years at a net discount rate of 3% is $17.41.Consequently,the value of a $1 annuity due payable over 26 years is

• A)$18.41.
• B)$17.41.
• C)$16.41.
• D)-$17.41.

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Definitions:

Formal Operations

refers to the final stage in Piaget's cognitive development theory, characterized by the ability to think abstractly and logically.

Sensory-Motor

Pertaining to the neural processes that integrate sensory input with motor output.

Preoperational

The stage of cognitive development in Piaget's theory, characterized by symbolic thinking, egocentrism, and a lack of logical reasoning.

Accommodation

The process by which the eye's lens changes shape to focus on near or distant objects, or in psychology, altering one's beliefs to make them compatible with reality.