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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

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Answers (1)
  1. 22 May, 14:55
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    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
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Home » Business » 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
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