To Determine the Converted Table Factor for the Present Value

question 41

Multiple Choice

To determine the converted table factor for the present value of an annuity due, one must find the factor for the present value of an ordinary annuity for

• A) n + 1 and then subtract 1.
• B) n − 1 and then subtract 1.
• C) n + 1 and then add 1.
• D) n − 1 and then add 1.

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Definitions:

Public Choice Theory

The economic analysis of government decision making, politics, and elections.

Government Decision Making

The process by which officials of a government choose options and take actions affecting the country or a section of its population.

Collective Economics

Practices and principles that focus on the management and optimization of resources for the benefit of a community or group rather than individuals.

Public Choice Theory

A theory that applies economic principles to political science, analyzing how public decisions are made and their impact on society.