Multiple Choice
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 an annual rate of 9% compounded quarterly. Use the graph below to estimate the difference between the present values of these annuities for 25 years (100 quarters) .
A) $32,000
B) $4,500
C) $30,000
D) $100
E) $9,586
Correct Answer:

Verified
Correct Answer:
Verified
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