Present Value of an Annuity: Myers, Ltd, Will Be Making

question 86

Multiple Choice

Present value of an annuity: Myers, Ltd, will be making lease payments of $3,895.50 for a 10-year period, starting at the end of this year. If the firm uses a 9 per cent discount rate, what is the present value of this annuity? (Round to the nearest dollar.)

• A) $23,250
• B) $29,000
• C) $25,000
• D) $20,000