Consider the Following Annuity: $2000 Due at the End of Each

question 141

Multiple Choice

Consider the following annuity: $2000 due at the end of each year for two years,and $3000 due thereafter at the end of each year for three years.At an interest rate of 4% compounded annually,the present value of the annuity is

• A) $12,487.24.
• B) $11,469.37.
• C) $10,541.31.
• D) $10,211.37.
• E) $9,583.28.

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Definitions:

Goals Of Psychology

The aims of psychology are to describe, explain, predict, and control behavior and mental processes.

Describe

The act of giving a detailed account or explanation of the characteristics, properties, or attributes of something.

Predict

The act of making an educated guess about the future based on current knowledge, data, or patterns.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something.