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:

Rational Approach

A method or process based on logic, reason, and systematic planning rather than on emotions or impulse.

Test Validation

The process of ensuring that a test is reliable and accurately measures what it is designed to assess.

Predictive Validity

Predictive validity refers to the extent to which a score on a scale or test predicts future performance on a related outcome.

Content Validity

The extent to which a test or measurement accurately represents the entire range of possible items or situations it is supposed to measure.