What is the meaning of the word annuity? Can the present value of an annuity be calculated as a series of single amounts? If so, how?
The word annuity means a series of payments of the same amount. The present value of an annuity could be calculated as a series of single amounts, but not with a single calculation. You would first calculate the present value of a single payment one year in the future; then the present value of a single payment two years in the future, etc. The present value of the single sums would be totaled to determine the present value of an annuity. To avoid the calculations, tables have been developed to calculate the present value of an annuity based on one calculation.
You might also like to view...
Key jobs are uncommon and have unstable content, making them very difficult to evaluate using pay surveys.
Answer the following statement true (T) or false (F)
How does a smart embezzler manipulate accounting records to conceal fraud?
a. By increasing assets. b. By manipulating stock accounts. c. By manipulating dividends. d. By increasing expenses.
The research evidence on employee involvement programs has shown what level of? support?
A. This area has not been studied by researchers yet B. Nonexistent C. Extremely favorable D. Mixed E. Extremely unfavorable
A licensee is a party who is granted limited rights in intellectual property or information rights owned by another person or company.
Answer the following statement true (T) or false (F)