In Order to Compute the Present Value of an Annuity

question 241

Multiple Choice

In order to compute the present value of an annuity, it is necessary to know the

• A) discount rate.
• B) number of discount periods and the amount of the periodic payments/receipts.
• C) both the discount rate and the number of discount periods and the amount of the periodic payments/receipts.
• D) something in addition to the discount rate and the number of discount periods and the amount of the periodic payments/receipts.

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Definitions:

Aha! Experience

A moment of sudden insight or discovery when a solution to a problem becomes clear, often after a period of contemplation or confusion.

Learned Helplessness

A scenario in which someone is afflicted by a profound sense of ineffectiveness, triggered by a harrowing event or consistent failures.

Seligman

A psychologist known for his work on learned helplessness, positive psychology, and well-being.

Depression

A mood disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in life.