To Calculate the Present Value of an Annuity, Divide the Amount

question 123

True/False

To calculate the present value of an annuity, divide the amount to be received each year by the present value of an annuity factor.

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Definitions:

Unilateral Contract

A contract where one party makes a promise in exchange for an act by the other party.

Quasi-contract

A quasi-contract is a legal concept where the court imposes a contract-like obligation on a party to prevent unjust enrichment, even though no actual agreement exists between the parties.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made when the other party has reasonably relied on that promise to their detriment.

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed to be enforceable.