What Is the Formula for the Present Value of an Ordinary

question 84

Multiple Choice

What is the formula for the present value of an ordinary annuity of 1?

• A) \(\frac { ( 1 + i ) ^ { n - 1 } } { i }\)
• B) \(\frac { 1 } { ( 1 + i ) ^ { n } }\)
• C) (1 + i)ⁿ
• D) \(\frac { 1 - \left[ 1 / ( 1 + i ) ^ { n } \right] } { i }\)

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