In Order to Compute the Present Value of an Annuity

question 26

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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Definitions:

Job Mobility

the ability of workers to move between different jobs, roles, or industries, often as a way to advance their careers or improve their work situation.

Nationally Focused

Concentrating efforts, policies, or interests on issues within a single country rather than on international perspectives or concerns.

Public Sector Budget Austerity

Economic policy measures that involve significant reductions in government spending and benefits, often used to reduce public sector debt.

Financialization

Financialization denotes the increasing dominance of financial markets, financial motives, financial institutions, and financial elites in the economy, shaping corporate and economic policies.