What Is the Formula for the Present Value of an Ordinary

question 112

Multiple Choice

What is the formula for the present value of an ordinary annuity of 1?

• A) \( \frac{(1+i)^{n-1}}{i} \)
• B) \( \frac{1}{(1+i)^{n}} \)
• C) \( (1+i)^{n} \)
• D) \( \frac{1-\left[1 /(1+i)^{n}\right]}{i} \)

---

Definitions:

Proactive Interference

The phenomenon where older memories interfere with the recall of newer memories.

Anterograde Interference

The process by which the formation of new memories is interfered with or disrupted, often due to the presence of previously learned information.

Retrograde Interference

A memory disruption phenomenon where new information interferes with the recall of old information.

Ebbinghaus

Refers to Hermann Ebbinghaus, a psychologist known for his research on memory and the forgetting curve.