(Ignore Income Taxes in This Problem

question 12

Multiple Choice

(Ignore income taxes in this problem.) How much would you have to invest today in the bank at an interest rate of 13% to have an annuity of $3,900 per year for 5 years, with nothing left in the bank at the end of the 5 years? Select the amount below that is closest to your answer.

• A) $19,500
• B) $17,257
• C) $2,118
• D) $13,716

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Definitions:

Free Trade

An economic policy allowing imports and exports to occur without government intervention such as tariffs, quotas, or other restrictions.

Sugar

A sweet-flavored substance sourced primarily from sugarcane and sugar beets, used widely as a sweetener in food and beverages.

Government Interference

Actions taken by the government to influence the economy or specific industries, which can include regulations, taxes, or subsidies.

Country

A distinct territorial body or political entity recognized as an independent nation.