In Order to Compute the Present Value of an Annuity

question 24

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:

Closure

The psychological feeling or process of resolving a traumatic or unsettling event, issue, or relationship.

Proximity

The physical or psychological closeness between people or objects, influencing their interaction and perceptions of one another.

Closure

The psychological phenomenon of seeking resolution and clarity on an issue or event.

Organized Whole

A concept in Gestalt psychology that focuses on patterns and relationships between components to form a unified system.