Present Value of an Annuity Due If the Present Value

question 138

Multiple Choice

Present Value of an Annuity Due If the present value of an ordinary,4-year annuity is $1,000 and interest rates are 6 percent,what is the present value of the same annuity due?

• A)$943.40
• B)$1,000.00
• C)$1,040.00
• D)$1,060.00

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Definitions:

Regression Coefficient

A value that represents the degree of change of a dependent variable expected from a one-unit change in an independent variable, all else being equal.

Simple Linear Regression

A statistical technique that fits a linear equation to observed data to model the connection between a dependent variable and a single independent variable.

t-test Statistic

A test statistic used to determine if there is a significant difference between the means of two groups.

F-test Statistic

A value derived from an F-test which is used to compare statistical models in terms of variance explained by the models, to determine if the models are significantly different from each other.