The Present Value of an Annuity Factor for 6 Years

question 29

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 $8,710.60.

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Definitions:

Unanimous Shareholders' Agreement

A contract among all shareholders of a company that may alter or remove the powers of the directors.

Fiduciary Duty

An obligation to act in the best interest of another party, such as a trustee's duty towards beneficiaries.

Closely Held

A description for a corporation or company that has a small number of shareholders, often characterized by its shares not being widely available to the public.

Fiduciary Duty

A legal obligation requiring one party to act solely in another party's interest with a high standard of care, especially in matters concerning trust and confidence.