What Is the PV of an Ordinary Annuity with 5

question 122

Multiple Choice

What is the PV of an ordinary annuity with 5 payments of $4, 700 if the appropriate interest rate is 4.5%?

• A) $16, 806
• B) $17, 690
• C) $18, 621
• D) $19, 601
• E) $20, 633

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Definitions:

Monopolist

An entity that is the sole provider of a particular product or service in the market, having significant control over pricing.

Deadweight Loss

A loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved.

Society's Welfare

The overall well-being and quality of life of the people within a society, including factors like health, happiness, and economic prosperity.

Socially Efficient

A market condition where resources are allocated in a way that maximizes the overall benefit to society.