If the Present Value Annuity Factor at 12% APR for 5

question 20

Multiple Choice

If the present value annuity factor at 12% APR for 5 years is 3.6048, what is the equivalent future value annuity factor?

• A) 2.0455
• B) 6.3529
• C) 1.7623
• D) None of the above

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Definitions:

Net Income

The profit of a company after subtracting all expenses from all revenues, indicating overall earnings performance.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset over its useful life.

Net Book Value

The calculated value of an asset after subtracting accumulated depreciation or amortization, representing its current value on the balance sheet.

Historical Cost

The original purchase price or cost of an asset or investment, without accounting for inflation or depreciation.