An Annuity Is Set Up That Will Pay $1500 Per

question 6

Multiple Choice

An annuity is set up that will pay $1500 per year for ten years.What is the present value (PV) of this annuity given that the discount rate is 6%?

• A)$8441
• B)$11,040
• C)$14,721
• D)$19,771

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Definitions:

Anxiety Disorders

Class of disorders in which the primary symptom is excessive or unrealistic anxiety.

Depression

A mental health disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Schizophrenia

A chronic and severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Desensitization

A psychological process that reduces the emotional response to a stimulus after repeated exposure to it.