The Present Value of an Annuity Factor for 6 Years

question 78

True/False

The present value of an annuity factor for 6 years at 10% is 4.3553. This implies that an annuity of six $2,000 payments at 10% would equal $8,711.

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Definitions:

Cost of Living

The sum of funds necessary to meet essential costs, including accommodation, nutrition, taxation, and medical care in a specific location and period.

New Goods

Products that have been recently introduced to the market, often featuring new technologies or innovations.

Core CPI

A measure of the underlying trends in the Consumer Price Index, excluding food and energy prices because they can fluctuate widely from month to month.

Consumer Price Index

An index measuring the change over time in the price of a basket of consumer goods and services, often used to assess inflation.