What Is the Present Value of an Annuity of $100

question 98

Multiple Choice

What is the present value of an annuity of $100 received at the end of each year for seven years? The first payment will be received one year from today (round to nearest $10) . The discount rate is 13%. To solve this problem with a financial calculator, the correct choice is

• A) N=7, i=13, PMT= 100, FV=0, solve for PV.
• B) N=7, i=13, PV= 100, FV=0, solve for FV.
• C) N=7, i=13, PMT= 100, FV=100, solve for PV.
• D) N=7, i=.13, PMT= 100, FV=0, solve for PV.

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Definitions:

Missouri

A U.S. state located in the Midwestern region, known for its diverse geography, ranging from the Ozark Mountains to the Mississippi River.

Statehood

The condition of being recognized as an independent nation or the admission of a territory into a federation or union as a state.

Slavery

A system in which individuals are owned by others, denied freedom, and forced to work without compensation.

Balance of Power

is a diplomatic theory aiming to prevent any one nation or alliance from becoming too strong by maintaining equally distributed military and economic power among countries or groups of countries.