Calculate the Present Value of 120 Payments of $50

question 58

Multiple Choice

Calculate the present value of 120 payments of $50.00 made at the end of each of 120 consecutive months respectively if money is worth 12% compounded monthly.

• A) $3485.03
• B) $3485.02
• C) $6000.00
• D) $3000.00
• E) $34 850.30

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Definitions:

Type I Error

Deciding wrongly that there was a significant result when in fact there was not.

Standard Deviations

A measure of the amount of variation or dispersion of a set of values.

Normal Curve

A symmetrical, bell-shaped curve that represents the distribution of many types of data where most values cluster around the mean.

Inferential Statistics

The branch of statistics that allows one to make predictions or inferences about a population based on a sample of data taken from that population.