What Is the Present Value of an Annuity of $12

question 82

Multiple Choice

What is the present value of an annuity of $12 received at the end of each year for seven years? Assume a discount rate of 11%. The first payment will be received one year from today (round to the nearest $1) .

• A) $25
• B) $40
• C) $57
• D) $118

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