The following figure shows a graph that compares the present values of two ordinary annuities of $800 quarterly as functions of the number of quarters. One annuity is at an annual rate of 6% compounded quarterly, and the other is at 9% compounded quarterly. What present value is required to purchase an annuity of $800 a quarter for 25 years with an interest rate of 9% compounded quarterly? Check your answer against the graph. Round your answer to the nearest cent.

A) $31,713.39
B) $40,146.91
C) $27,577.08
D) $39,107.20
E) $52,000.00

Question

The following figure shows a graph that compares the present values of two ordinary annuities of $800 quarterly as functions of the number of quarters. One annuity is at an annual rate of 6% compounded quarterly, and the other is at 9% compounded quarterly. What present value is required to purchase an annuity of $800 a quarter for 25 years with an interest rate of 9% compounded quarterly? Check your answer against the graph. Round your answer to the nearest cent. ​
​  ​
​
A) $31,713.39 
B) $40,146.91 
C) $27,577.08 
D) $39,107.20 
E) $52,000.00

Quizplus · Accepted Answer

The Answer of The following figure shows a graph that compares the present values of two ordinary annuities of $800 quarterly as functions of the number of quarters. One annuity is at an annual rate of 6% compounded quarterly, and the other is at 9% compounded quarterly. What present value is required to purchase an annuity of $800 a quarter for 25 years with an interest rate of 9% compounded quarterly? Check your answer against the graph. Round your answer to the nearest cent. ​
​  ​
​
A) $31,713.39 
B) $40,146.91 
C) $27,577.08 
D) $39,107.20 
E) $52,000.00

The Following Figure Shows a Graph That Compares the Present