Mike Carlson will receive $12,000 a year from the end of the third year to the end of the 12thyear (10 payments). The discount rate is 10%. The present value today of this deferred annuity is:
A) $61, 450
B) $42,185
C) $55,379
D) $60,909

Question

Quizplus · Accepted Answer

The Answer of Mike Carlson will receive $12,000 a year from the end of the third year to the end of the 12thyear (10 payments). The discount rate is 10%. The present value today of this deferred annuity is:
A) $61, 450
B) $42,185
C) $55,379
D) $60,909

Mike Carlson Will Receive $12,000 a Year from the End