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The Present Value of an Ordinary Annuity Is $2,000

Question 71

Multiple Choice

The present value of an ordinary annuity is $2,000.The annuity features monthly payments from an account that pays 12% APR (with monthly compounding) .If this was an annuity due,what would be the present value? (assume that same interest rate and same payments)


A) $1,785.71
B) $1,980.20
C) $2,020.00
D) $2,080.00

Correct Answer:

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