Table A.4 - Present Value of Annuity of $1
Periods
8%/10%/12%/14%
1/0.9259/0.9091/0.8929/0.8772
2/1.7883/1.7355/1.6901/1.6467
3/2.5771/2.4869/2.4018/2.3216
4/3.3121/3.1699/3.0373/2.9137
A) $34,816.60
B) $56,000.00
C) $55,600.00
D) $44,378.60
Periods
8%/10%/12%/14%
1/0.9259/0.9091/0.8929/0.8772
2/1.7883/1.7355/1.6901/1.6467
3/2.5771/2.4869/2.4018/2.3216
4/3.3121/3.1699/3.0373/2.9137
Your grandmother has agreed to send you $14,000 a year for 4 years to help finance your college education. What is the present value of this annuity at a discount rate of 10%?
A) $34,816.60
B) $56,000.00
C) $55,600.00
D) $44,378.60
Answer: D
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