To Compute the Present or Future Value of an Annuity

question 66

Multiple Choice

To compute the present or future value of an annuity due, one computes the value of an ordinary annuity and then

• A) multiplies it by (1 + i).
• B) divides it by (1 + i).
• C) multiplies it by (1 − i).
• D) divides it by (1 − i).

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Definitions:

Political Pressure

Influence or persuasion exerted by interest groups, political parties, or the public to achieve a desired political or policy outcome.

Civil Service

A sector of government composed mainly of career bureaucrats hired on professional merit rather than appointed or elected, whose role is to implement government policy.

Pendleton Act

A United States federal law enacted in 1883 which established that positions within the federal government should be awarded on the basis of merit instead of political affiliation.

Federal Employees

Individuals who work within one of the departments or agencies of the United States government.