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:

Serous Cells

Gland cells that produce a watery, protein-rich fluid, playing key roles in lubrication and protection in various organs and cavities of the body.

Mucus Neck Cells

Specialized cells in the stomach that produce mucus to protect the lining of the stomach from acidic gastric juice.

Adventitia

The outermost layer of the wall of a blood vessel or other organ, consisting mainly of connective tissue, providing structural support and protection.

Serosa

The outermost layer of tissue that envelops some internal organs, part of the lining of the body cavities and a structure involved in protection and secretion.