The following figure shows a graph that compares the present values of two ordinary annuities of $800 quarterly as functions of the number of quarters. One annuity is at an annual rate of 6% compounded quarterly, and the other is at 9% compounded quarterly. What present value is required to purchase an annuity of $800 a quarter for 25 years with an interest rate of 9% compounded quarterly? Check your answer against the graph. Round your answer to the nearest cent.
A)$31,713.39
B)$40,440.73
C)$27,577.08
D)$39,107.20
E)$52,000.00

Question

The following figure shows a graph that compares the present values of two ordinary annuities of $800 quarterly as functions of the number of quarters. One annuity is at an annual rate of 6% compounded quarterly, and the other is at 9% compounded quarterly. What present value is required to purchase an annuity of $800 a quarter for 25 years with an interest rate of 9% compounded quarterly? Check your answer against the graph. Round your answer to the nearest cent. ​  ​
A)$31,713.39 
B)$40,440.73 
C)$27,577.08 
D)$39,107.20 
E)$52,000.00

Quizplus · Accepted Answer

The Answer of The following figure shows a graph that compares the present values of two ordinary annuities of $800 quarterly as functions of the number of quarters. One annuity is at an annual rate of 6% compounded quarterly, and the other is at 9% compounded quarterly. What present value is required to purchase an annuity of $800 a quarter for 25 years with an interest rate of 9% compounded quarterly? Check your answer against the graph. Round your answer to the nearest cent. ​  ​
A)$31,713.39 
B)$40,440.73 
C)$27,577.08 
D)$39,107.20 
E)$52,000.00

The Following Figure Shows a Graph That Compares the Present