What Is the Present Value of an Annual Payment of $3,600

question 15

Multiple Choice

What is the present value of an annual payment of $3,600 discounted back 12 years at an annual rate of return of 5 percent?

• A)$12,977.19
• B)$31,907.71
• C)$45,360.00
• D)$57,301.66

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Definitions:

Mollen Commission

An independent commission established to investigate corruption within a police department, particularly noted for its work with the New York City Police Department in the 1990s.

Sizeable Profits

Substantial financial gains that significantly exceed the usual or expected amount.

Wide Powers

Refers to the broad and extensive authority or influence that an entity or individual possesses.

Discretion

The freedom to decide what should be done in a particular situation, often implying judgment and prudence in making such decisions.