A 15 Payment Annual Annuity Has Its First Payment in 9

question 5

Multiple Choice

A 15 payment annual annuity has its first payment in 9 years. If the payment amount is $1400 and the interest rate is 7%, what is the most you should be willing to pay today for this investment?

• A) $5,825.11
• B) $12,751.08
• C) $6,416.67
• D) $7,421.24
• E) $6,935.74 PV0 =$1,400* {[1 - 1.07^-15]/0.07}/1.07⁸

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Definitions:

Massage

The use of pressure, kneading, stroking, and the human touch to alleviate pain and promote healing through relaxation.

Passive Mobility

The range of motion of a joint or the ability to move a body part through its full range of motion without the use of the muscle's own power, often assessed during physical therapy.

Lateral Flexion

The movement of bending sideways at the waist or neck, which can be observed in both the cervical spine and the lumbar spine.

External Rotation

A movement or exercise where a limb or part of the body is rotated away from the center of the body, often used in physical therapy and fitness.