You Recently Won a Contest Sponsored by a Local Radio

question 174

Multiple Choice

You recently won a contest sponsored by a local radio station. The radio station will pay you $3000 at the end of each of the next 11 years. Assuming an interest rate of 3%, what is the present value of this prize? Present Value of $1
Present Value of Annuity of $1

• A)$38,424
• B)$27,759
• C)$25,590
• D)$47,811

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Definitions:

Kentucky Fried Chicken

A global fast-food restaurant chain that specializes in fried chicken, founded by Colonel Harland Sanders in the United States.

Consumption Component

A part of aggregate demand representing the total value of all goods and services consumed by households.

Gross Domestic Product

The overall value, in market or monetary terms, of every final good and service produced within a nation's borders in a set time frame.

Kitchen Appliances

Various electrical or mechanical devices used in a kitchen for performing cooking, cleaning, or food preservation tasks.