Estimate the Present Value of an Annuity If Payments Are

question 168

Multiple Choice

Estimate the present value of an annuity if payments are $500 monthly for 19 years and the account earns interest at the rate of 8% / year compounded continuously. Round your answer to the nearest dollar.

• A) $56,454
• B) $57,363
• C) $62,918
• D) $58,597

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Definitions:

Conservation

Efforts or strategies aimed at preserving the natural environment, resources, and biodiversity for future generations.

Egocentrism

Piaget’s term for inability to consider another person’s point of view; a characteristic of young children’s thought.

Piaget

A Swiss psychologist known for his pioneering work in the study of child development and his theory of cognitive development stages.

Assessment

The systematic evaluation or measurement of a process, person's performance, or product, often used in educational and professional settings to determine proficiency or progress.