An Accountant Wishes to Find the Present Value of an Annuity

question 132

Multiple Choice

An accountant wishes to find the present value of an annuity of $1 payable at the beginning of each period at 10% for eight periods. The accountant has only one present value table which shows the present value of an annuity of $1 payable at the end of each period. To compute the present value, the accountant would use the present value factor in the 10% column for

• A) seven periods.
• B) eight periods and multiply by (1 + .10).
• C) eight periods.
• D) nine periods and multiply by (1 - .10).

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