The Present Value of an Ordinary Annuity Formula Is

question 4

Multiple Choice

The present value of an ordinary annuity formula is

• A)(C / r)(1 / (1 + r)^T(1 + r)
• B)C({1 - [1 / (1 + r)^T]}/ r)
• C)[C(1 + r)^T/ r] / (1 + r)
• D)(C / r)(1 / (1 + r)^T
• E)C(1 + r)^T/ r(1 + r)

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