Suppose the interest rate is 6% and compounded annually.What is the present discounted value of 6 monthly payments of $150?
A) $855.00
B) $877.50
C) $884.46
D) $900.00

Question

Quizplus · Accepted Answer

To find the present discounted value of the 6 monthly payments of $150, we need to use the formula for present value of an annuity. Using this formula, we can calculate that the present value is $884.46. Therefore, the best choice is C.

Suppose the Interest Rate Is 6% and Compounded Annually