Answer:
cost is $4183.87
Step-by-step explanation:
given data
time t = 5 year
amount A = $1000
rate r = 6.25 % = 0.0625
to find out
how much it will cost
solution
we will apply here formula for present value of annuity that is express as
present value = amount ×
....................1
put here all these value we get cost we will pay
present value = amount ×
present value = 1000 ×
present value = 4183.869221
so cost is $4183.87
20 because you multiply 4 and 5 and get 20
I think it represents where something is starting from, like something growing up (a chart with rising numbers)