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:

Recipient

An individual or entity that receives something from another source, such as a transfusion, donation, or award.

Letter Sent

The action of dispatching written correspondence to a specific recipient or address.

Travel Agencies

Businesses that specialize in arranging travel services and accommodations for individuals and groups.

Correspondence

The act of communicating by exchanging letters or emails.