If a Series of Equal Payments Is Paid Regularly Out

question 230

Multiple Choice

If a series of equal payments is paid regularly out of a bank account which earns a constant rate of interest, the ____ is the amount that must be in the bank at the beginning of the series to just fund all of the payments.

• A)future value of an annuity due
• B)present value of an annuity due
• C)future value of an ordinary annuity
• D)present value of an ordinary annuity
• E)None of the above

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