Assuming an interest rate of 6%, the present value of $18,000 received at the end of each year for 6 years would be closest to
A) $88,506.
B) $11,970.
C) $108,000.
D) $125,550.
A
Explanation: A) Present value annuity @ 6% for 6 yrs = 4.917 × 18,000 = $88,506
You might also like to view...
Advocates of the ________ argue that when large companies are allowed to merge, fix prices, and participate in joint ventures, jobs are lost and plants are shut down in some areas
A) preservation of small businesses and an economy characterized by many sellers competing with one another B) prevention of concentration of political and economic power in the hands of a few sellers in each industry C) preservation of local control of business and protection against the effects of labor dislocation D) promotion of the maximization of consumer welfare using market principles and efficiency criteria
In multiple-server models, ________ independent servers in parallel serve a single waiting line
A) 2 or more B) 3 or more C) 4 or more D) 5 or more