Ask Question
22 May, 13:31

What is the present value factor for an annuity of five periods and an interest rate of 10 percent? a. 1.6105

b. 6.1051

c. 3.7908

d. 7.7217

+2
Answers (1)
  1. 22 May, 14:55
    0
    Answer: The correct answer is choice c - 3.7908

    Explanation: The formula to calculate the annuity present value factor is:

    (1 - (1+r) ^-n) / rate

    Using the information from the problem, r equals the rate, which is. 1 and n equals the number of periods, which is 5.

    Now, putting the information into the formula:

    (1 - (1 +.1) ^-5) /.1 = Present value annuity factor

    3.7908 = Present value annuity factor
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “What is the present value factor for an annuity of five periods and an interest rate of 10 percent? a. 1.6105 b. 6.1051 c. 3.7908 d. 7.7217 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers