An Annuity Pays $47 Per Year for 22 Years

question 24

Multiple Choice

An annuity pays $47 per year for 22 years. What is the future value (FV) of this annuity at the end of those 22 years, given that the discount rate is 8%?

• A) $1563.88
• B) $3127.76
• C) $3649.06
• D) $2606.47

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Definitions:

Energized

Describes an electrical circuit or component that is active and under power, thereby capable of performing its intended function.

Electromagnet Control Relay

A relay device that uses an electromagnet to mechanically operate a switch, allowing lower power signals to control much larger power circuits.

Switch Contacts

The conductive parts in a switch that come together to complete an electrical circuit when activated.

Coil

In programming and electrical engineering, it refers to a command used in ladder logic for activation or control of outputs.