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krek1111 [17]
3 years ago
5

The present value of an annuity considers which of the following factors? I. the timing of each cash flow II. the amount of each

cash flow III. the discount rate IV. the number of cash flows
Business
1 answer:
Nitella [24]3 years ago
8 0

Answer:

All of them.

Explanation:

For considering the annuity formula we can determinate all the proposed factor:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C represent II the amount of each cash flow

r = represent the discopunt rate

while time or "n" represent the numebr of cashflow we have to calcualte the present value.

The timing refer wether the payment are made at the beginning or end of the period.

When made at the beginning it is an annuity-due

and the (1+r) factor multiplies the previous formula to represent the addtional period of capitalization each cashflow has or the one period less to discount for each cashflwo in cases of prresent value.

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Explanation:

All the given statements are correct.

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The three components that are most important for establishing credibility are competence, caring, and Character

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8 0
1 year ago
why might a bank offer to make a loan to a consumer at a low initial rate which will increase after a set period of time?a. too
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Dovator [93]

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