Jeff Lovett Has a Five-Year Loan on Which He Will

question 54

Multiple Choice

Jeff Lovett 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 percent, 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:

Behavioral Economist

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