To Compute the Present Value of $1,000 Annuity Received at the End

question 60

Multiple Choice

To compute the present value of $1,000 annuity received at the end of each of the next three years and discounted at the rate of 5% per year, you should enter the following variables into a financial calculator.

• A)N=3, i=5, PMT=1000
• B)N=3, i=5, FV=3000
• C)N=3, i=15, PMT=1000
• D)N=1, i=5, PMT=3000