The above table shows a 5 year payment plan. Each payment is made at the end of the year, so after one year, a payment of $ made, after two years another payment of $1,500 is made and so on. The interest rate is 3 percent.
-Refer to the table above. What is the value of A plus B plus C plus D (A + B + C +D)or the present value of the first four payments?
A)$6,200.50
B)$6,436.27
C)$6,225.32
D)$6,589.23

Question

The above table shows a 5 year payment plan. Each payment is made at the end of the year, so after one year, a payment of $ made, after two years another payment of $1,500 is made and so on. The interest rate is 3 percent.
-Refer to the table above. What is the value of A plus B plus C plus D (A + B + C +D)or the present value of the first four payments?
A)$6,200.50 
B)$6,436.27 
C)$6,225.32 
D)$6,589.23

Quizplus · Accepted Answer

The present value of a series of payments can be calculated using the formula for the present value of an annuity or a series of cash flows, discounted at a given rate. Without the specific table or details such as the interest rate, payment amounts, and timing, it's impossible to directly calculate the value. However, the correct answer is chosen based on the assumption that the question provides all necessary information to perform the calculation, and the answer reflects the sum of the present values of the first four payments.

The Above Table Shows a 5 Year Payment Plan