An Annuity Pays $13 Per Year for 53 Years

question 29

Multiple Choice

An annuity pays $13 per year for 53 years. What is the future value (FV) of this annuity at the end of that 53 years given that the discount rate is 9%?

• A) $8258.91
• B) $16,517.82
• C) $19,270.79
• D) $13,764.85

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Definitions:

Excessive Optimism

An overly positive outlook that can lead to unrealistic expectations about future events or outcomes.

Escalation Of Commitment

The tendency to continue to support a failing course of action.

Risk Averse

This term describes individuals or organizations that prefer to minimize risks, often opting for safer, more predictable outcomes.

Z Problem-solving Model

A methodological approach to problem-solving that involves examining issues from multiple perspectives to find sustainable solutions.