When Using a Present Value of an Annuity Table (E

question 108

Multiple Choice

When using a present value of an annuity table (e.g., Table IV at the back of the book) , _____.

• A) payments are assumed to be made at the beginning of each period
• B) PVIFA factors decrease with an increase in the interest rate
• C) PVIFA factors decrease with an increase in the number of periods
• D) All of these are correct

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