If the Present Value of an Ordinary, 8-Year Annuity Is

question 139

Multiple Choice

If the present value of an ordinary, 8-year annuity is $12,500 and interest rates are 9.1 percent, what is the present value of the same annuity due?

• A) $13,637.50
• B) $13,941.90
• C) $14,114.80
• D) $14,211.90

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Definitions:

Personnel Expenses

Costs associated with employing personnel, including salaries, benefits, and payroll taxes.

Planning Budget

A budget prepared before the beginning of a financial period as a plan for earning and spending, based on expected activities and conditions.

Selling

The process of promoting and transferring ownership of a product or service to customers in exchange for money or value.

Administrative Expenses

Costs related to the general operation of a business, including salaries of executives, office supplies, and utilities.