When Using a Present Value of an Annuity Table

question 242

Multiple Choice

When using a present value of an annuity table:

• A)payments are assumed to be made at the beginning of each period.
• B)PVFA factors decrease with an increase in the interest rate.
• C)PVFA factors increase with an increase in the number of periods.
• D)b and c only

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Definitions:

Accurately Scored

Marking or grading something in a way that is precise, correct, and without errors.

Multiple Administrations

The process of conducting a test or measurement on several occasions to assess consistency or change over time.

Reliable Indicator

A measure or sign that consistently and accurately predicts or represents a phenomenon or outcome.

Valid Profile

A representation or set of data that accurately reflects the subject being measured or described, often used in the context of assessments or psychological testing.