The Present Value of Annuity Payments Made Far into the Future

question 16

Multiple Choice

The present value of annuity payments made far into the future is

• A) worth very little today.
• B) worth much more today.
• C) valued as having no time value of money.
• D) valued as worthless as their value is not determinable.

---

Definitions:

Markup Percent

The proportion added onto the purchase price of products to account for overhead costs and gain a profit.

Cost

The amount of money required to purchase something or the expenditure incurred to produce something.

Markup Percent

The percentage by which the cost of a product is increased to determine its selling price.

Cost

The amount of money required to purchase something or the expense associated with creating a product or service.