In Order to Compute the Present Value of an Annuity

question 10

Multiple Choice

In order to compute the present value of an annuity, it is necessary to know the
1. discount rate.
2. number of discount periods and the amount of the periodic payments or receipts.

• A)1
• B)2
• C)both 1 and 2
• D)something in addition to 1 and 2

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