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History Bookmarks Window Help moodle-2017-2018.calstatela.edu Home- Cal State LA ON-L CAL STATE LA Moodle 2017-2018 What is the present value of recelving $888 a year for 8 years if you expect a rate of return of 8% a year? Select one: · A.$2,665 B. $1,644 C. $5,103 D·$2,656 Use the table below to answer the following questions: Present Value of an Annuity of 1 Present Value of 1 Period 4% 8% 4% 8% 0.9615 0.9259 0.9615 0.9259 0.9246 0.8573 1.8861 1.7833 0.8890 0.7938 2.7751 2.5771 0.8548 0.7350 3.6299 3.3121 0.8219 0.6806 4.4518 3.9927 0.7903 0.6302 5.2421 4.6229 Required annual percentage rate (APR) o

Explanation / Answer

Present value = $888 * $5.74664(PV of annuity of 8% for 8 years)

= $5103.

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