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Lara Is Going to Receive $10,000 a Year at the End

Question 71

Multiple Choice

Lara is going to receive $10,000 a year at the end of each of the next five years from her insurer to meet her education cost. Using a discount rate of 14%, the present value of the receipts can be stated as:


A) PV = $10,000 (Annuity FV factor, i = 14%, n = 5) .
B) PV = $10,000 (PV factor, i = 14%, n = 5) .
C) PV = $10,000 (Annuity PV factor, i = 14%, n = 5) .
D) PV = $10,000 (FV factor, i = 14%, n = 5) .

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