Future and Present Value of an Annuity Due If You

question 127

Multiple Choice

Future and Present Value of an Annuity Due If you start making $100 monthly contributions today and continue them for five years,what is their future value if the compounding rate is 10 percent APR? What is the present value of this annuity?

• A)$508.14, $487.74
• B)$512.64, $491.80
• C)$7,743.71, $4,706.53
• D)$7,808.24, $4,745.78

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Definitions:

Meditation

A practice where an individual uses a technique such as mindfulness or focusing the mind on a particular object, thought, or activity to train attention and awareness, and achieve a mentally clear and emotionally calm and stable state.

Nominal Fallacy

The incorrect belief that naming or labeling something explains it or understanding its label provides understanding of its nature.

Circular Reasoning

A logical fallacy in which the conclusion is included in the premise, offering no actual proof or argument.

Logical Fallacy

An error in reasoning that renders an argument invalid.