A specific present value of an ordinary annuity factor for a given number of periods and a specific discount rate is equal to th

Question

3 years ago

6

A specific present value of an ordinary annuity factor for a given number of periods and a specific discount rate is equal to th

e cumulative sum of the present value of single sum factors over the given number of periods for that discount rate.1. True2. False

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1 answer:

tekilochka [14] · Answer 1 · 2022-02-17T19:33:33+03:00

tekilochka [14]3 years ago

4 0

Answer:

True

Explanation:

This is true because if we add all the discounts factor of a particular rate 10% (suppose) for 10 years (suppose). Then the sum will be equal to the annuity factor at 10 years time. This is what the statement is saying above so it is 110% true.