The Future Value of an Annuity Table Provides a "Shortcut

question 33

True/False

The future value of an annuity table provides a "shortcut" for calculating the future value of a steady stream of payments, denoted as A. The same value can be calculated directly from the following equation:
$$\mathrm { FV } _ { \mathrm { A } } = \mathrm { A } \left[ \frac { 1 } { ( 1 + i ) } \right] ^ { 1 } + \mathrm { A } \left[ \frac { 1 } { ( 1 + i ) } \right] ^ { 2 } + \ldots \mathrm { A } \left[ \frac { 1 } { ( 1 + i ) } \right] ^ { n }$$

---

Definitions:

Write Concisely

The skill of expressing ideas with clarity and brevity, avoiding unnecessary words or details.

Sentence Structure

The arrangement of words, phrases, and clauses in a sentence to convey clear and effective meaning.

Faulty Cause

A logical fallacy where a cause is incorrectly identified for an effect because the real cause is either unknown or overlooked.

Qualifiers

Words or phrases that modify statements, often to soften absolutes or make expressions less general and more accurate.