Which One of the Following Is the Annuity Present Value

question 57

Multiple Choice

Which one of the following is the annuity present value formula?

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

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Definitions:

Normal Balance

The side (debit or credit) of an account that is increased, reflecting the account's natural balance.

Asset Account

An account that records the value of assets owned by a company, such as cash, inventory, and equipment.

Financial Statement

A record that details the financial activities and conditions of a business or individual, commonly including the balance sheet, income statement, and cash flow statement.

Financial Statement

Formal records of the financial activities and position of a business, individual, or other entity, typically including the income statement, balance sheet, and statement of cash flows.