What's the Present Value of a 4-Year Ordinary Annuity of $2

question 155

Multiple Choice

What's the present value of a 4-year ordinary annuity of $2, 250 per year plus an additional $3, 000 at the end of Year 4 if the interest rate is 5%?

• A) $8, 509
• B) $8, 957
• C) $9, 428
• D) $9, 924
• E) $10, 446

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Definitions:

Scatter Chart

A type of graph used to display values for two variables for a set of data, showing the relationship between them.

Variables

Features or characteristics that can take on different values in data collection and analysis.

Stacked Column Chart

A graphical representation of data where multiple columns are placed on top of one another to indicate total values and the constituent parts.

Coefficient Of Determination

Represented as R-squared, it measures the proportion of the variance in the dependent variable that is predictable from the independent variable(s).