What Is the Present Value of an Annuity of $12

question 82

Multiple Choice

What is the present value of an annuity of $12 received at the end of each year for seven years? Assume a discount rate of 11%. The first payment will be received one year from today (round to the nearest $1) .

• A) $25
• B) $40
• C) $57
• D) $118

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Definitions:

Language

A system of symbols, signs, sounds, and rules used by humans to communicate thoughts, emotions, and information to others.

Lorenz

Refers to Konrad Lorenz, an Austrian zoologist, ethologist, and ornithologist known for his foundational work in ethology, the study of animal behavior.

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Aggressive behavior directed towards members of the same species, which can occur for reasons such as competition for resources or mating.

Emotional Intelligence

The capacity to be aware of, control, and express one's emotions, and to handle interpersonal relationships judiciously and empathetically.