The Present Value of an Annuity Factor for 6 Years

question 92

True/False

The present value of an annuity factor for 6 years at 10% is 4.3553.This implies that an annuity of six $2,000 payments at 10% would equal $8,711.

---

Definitions:

Interest Rate

The percentage of an amount of money charged for its use over a specific period of time.

Present Value

The immediate fiscal worth of a future amount of money or cash flow streams, discounted with a specific rate of return.

Future Value

The value of an investment or cash flow at a specified future date, based on an assumed rate of growth or return.

Financial Calculator

A specialized calculator used to perform financial functions, such as calculating interest rates, payments, and investment values.