Find the Present Value of the Ordinary Annuity

question 125

Multiple Choice

Find the present value of the ordinary annuity. Please round the answer to the nearest cent. $5,000 per semiannual period for 5 yr at 11%/year compounded semiannually

• A) P = $
• B) P = $
• C) P = $
• D) P = $
• E) P = $

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Definitions:

Equal Chance

The principle that everyone should have the same opportunity to succeed or participate without discrimination or bias.

Acceptable Assumptions

The premises that are considered reasonable and are accepted without requiring empirical evidence, often used as a foundational basis in arguments or theories.

Random Sampling

A method of selecting a sample from a population in such a way that each individual has an equal probability of being chosen, ensuring the representativeness of the sample.

Equal Chance

The principle that in a certain process, event, or situation, all outcomes or participants have the same probability or likelihood of occurring or being selected.