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:

Resources

Economic or productive assets that can be utilized by an organization or individual to generate income or value, including natural, human, and financial resources.

Land

An asset category representing the ground a company owns, used for business operations but doesn’t depreciate over time.

Buildings

Physical structures owned by a business, classified as fixed assets on the balance sheet.

Equipment

Equipment refers to tangible property owned by a company that is used in its operations to produce goods or services and has a useful life longer than one year.