You Are Scheduled to Receive Annual Payments of $10,000 for Each

Multiple Choice

You are scheduled to receive annual payments of $10,000 for each of the next 25 years. Your discount rate is 8.5%. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?

A) $8,699
B) $9,217
C) $9,706
D) $10,000
E) $10,850