To Compute the Present Value of $1,000 Annuity Received at the End

question 6

Multiple Choice

To compute the present value of $1,000 annuity received at the end of each of the next three years and discounted at the rate of 5% per year, you should use he following EXCEL command.

• A) ANN
• B) TVM
• C) RATE
• D) PV

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Definitions:

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Fraud

A deliberate deception practiced to secure unfair or unlawful gain, often involving financial transactions.

Physical Harm

Injury or damage to the body of a person, which can result from accidents, violence, or other physical impact.

Below-Market Price

A price for goods or services that is lower than the current market rate or the value typically expected for similar items under normal market conditions.