The Present Value Factor for an Annuity

question 206

Multiple Choice

The present value factor for an annuity:

• A) is less than the number of years in the annuity.
• B) approaches a value of infinity for a perpetuity.
• C) is greater than the number of years in an annuity.
• D) a and b
• E) None of the above

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Definitions:

Quasi-Experiment

A research design that resembles experimental research but lacks random assignment to treatment or control groups, making causal inferences more challenging.

Naturally Occurring Groups

Groups that form spontaneously based on shared interests, geographies, or inherent traits, as opposed to being artificially assembled.

Dependent Variable

The variable in a study or experiment that is expected to change or vary as a result of manipulations of the independent variable(s).

Internal Validity

The judgment that for a particular experiment, it is possible to conclude that the manipulated independent variable caused the change in the measured dependent variable.