What Is the Present Value Today of an Ordinary Annuity

question 16

Multiple Choice

What is the present value today of an ordinary annuity cash flow of $3,000 per year for forty years at an interest rate of 6.0% per year?

• A)$120,000.00
• B)$1,327,777.67
• C)$45,139.89
• D)$32,270.87

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Definitions:

New Businesses

Enterprises that have been recently established or started operations.

Succession Plan

A strategy for identifying and developing future leaders within an organization, ensuring a smooth transition of key roles in the case of departure or retirement.

Succession Problem

Challenges and issues related to transferring leadership or ownership of a company from one generation or leader to another.

Succession Plans

Strategic planning processes that identify and develop new leaders who can replace old leaders when they leave, retire, or pass away.