The Present Value of an Ordinary Annuity of $350 Each

question 94

Multiple Choice

The present value of an ordinary annuity of $350 each year for five years,assuming an opportunity cost of 4 percent,is: (Round to the nearest whole dollar)

• A) $288
• B) $1,896
• C) $1,750
• D) $1,558

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Definitions:

Common Law

A legal system based on precedent and judicial decisions, rather than written laws or statutes, primarily in the UK and former British colonies.

Objectively Inferred

Conclusions or deductions made based on objective facts or evidence, without influence from personal feelings or perspectives.

Revoke

To officially cancel or withdraw an offer, license, right, or permission that has been granted.

Letter of Credit

A financial document issued by a bank guaranteeing a buyer's payment to a seller within a specified timeframe and under agreed conditions.