If the Five-Year Present Value Annuity Factor Is 3

question 43

Multiple Choice

If the five-year present value annuity factor is 3.60478 and four-year present value annuity factor is 3.03735, what is the present value at the $1 received at the end of five years?

• A) $0.63552
• B) $1.76233
• C) $0.56743
• D) None of the above

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Definitions:

Forecasting Models

Quantitative and qualitative models used to predict future data points, trends, or patterns, based on historical and current data.

Absolute Deviation

The absolute difference between each data point in a set and a point of central tendency, often the mean or median.

Autoregressive Model

A statistical model for analyzing time series data that uses the dependent relationship between an observation and a number of lagged observations.

Mortgage Rate

The interest rate charged on a mortgage loan, which can be fixed or variable, determining the amount of interest the borrower pays over the life of the loan.