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CFA Level 1
Quantitative Methods

Annuity Total Cash Flow Calculation

Very Easy Time Value Of Money Annuities And Perpetuities

Consider the following scenario: You are planning to receive payments from an investment that will yield a consistent annual cash flow of $1,000 for the next 5 years. This scenario represents an example of an annuity.

Which of the following statements accurately describes the total amount of cash flows received from this annuity at the end of the fifth year?

Hint

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