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:

Behaviors

The way an individual or group behaves or responds to outside or inside forces.

Decision-Making Process

A systematic approach to making choices among various alternatives, often involving steps such as identifying the problem, generating options, and selecting the best course of action.

Staff

Individuals employed in an organization or working for a particular project or objective.

D1

A term commonly used in Situational Leadership®, referring to one of the development levels where individuals are high in enthusiasm and commitment but low in skills and experience.