Mike Carlson Will Receive $12,000 a Year from the End

question 24

Multiple Choice

Mike Carlson will receive $12,000 a year from the end of the third year to the end of the 12th year (10 payments) . The discount rate is 10%. The present value today of this deferred annuity is ________.

• A) $61,450
• B) $42,185
• C) $60,909
• D) $55,379