The Present Value of an Annuity

question 206

Multiple Choice

The present value of an annuity:

• A)is equal to the sum of the present values of each period's cash flow.
• B)has a future value (as an amount)equal to the future value of the annuity.
• C)has a future value (as an amount)equal to the sum of the annuity's cash flows.
• D)a and b.

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Definitions:

Identifying Your Goal

The process of determining what you aim to achieve in a particular situation or endeavor.

But Messages

Statements in which the word but diminishes or negates whatever has been said prior to but.

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Physical and psychological reactions that prepare an individual to confront or escape a perceived threat or stressor.

Adrenaline

A hormone and neurotransmitter produced by the adrenal glands that increases heart rate, contracts blood vessels, dilates air passages, and participates in the fight-or-flight response.