Annuity Due: Mark Holcomb Has a Five-Year Loan on Which

question 78

Multiple Choice

Annuity due: Mark Holcomb has a five-year loan on which he will make annual payments of $2,235, beginning now. If the interest rate on the loan is 8.3 per cent, what is the present value of this annuity? (Round to the nearest dollar.)

• A) $9,588
• B) $8,854
• C) $8,612
• D) $9,122

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Definitions:

Hypersegregation

An extreme form of racial segregation in urban areas where minority groups are isolated from the majority in multiple aspects of daily life.

Racial Groups

Collections of people who are categorized based on shared physical or social qualities into categories generally viewed as distinct within a given society.

U.S. Cities

Urban areas within the United States characterized by significant populations, infrastructure, and economic activity.

Redlining

A discriminatory practice by which services (like banking or insurance) are withheld from potential customers in certain areas, often based on race.