Which of the Following Properly Describes the Future Value of an Annuity

question 20

Multiple Choice

Which of the following properly describes the future value of an annuity due?

• A)The first payment is one period after the present value.
• B)The last payment is one period after the future value.
• C)The first payment is on the same date as the present value.
• D)The last payment is on the same date as the future value.

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Definitions:

Variable Costs

Costs that vary in direct proportion to changes in levels of production or sales, such as raw materials and labor expenses.

Variable Costs

Costs that change in proportion to the level of production or sales activity, such as raw materials or direct labor.

Direct Proportion

A relationship between two variables where an increase in one results in a proportional increase in the other.

Activity Level

In accounting and management, refers to the volume of units produced, hours worked, or any other measure of output that drives the costs in a business.