All other factors being equal, the present value of an annuity due is equal to [...]
Answer
the present value of an ordinary annuity multiplied by (1 + r)
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#reading-6-tvm
Question
All other factors being equal, the present value of an annuity due is equal to [...]
Answer
?
Tags
#reading-6-tvm
Question
All other factors being equal, the present value of an annuity due is equal to [...]
Answer
the present value of an ordinary annuity multiplied by (1 + r)
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Subject 4. The Future Value and Present Value of a Series of Equal Cash Flows (Ordinary Annuities, Annuity Dues, and Perpetuities) e present value of a regular annuity of (N - 1) period. Use the above formula to calculate the second part and add the two parts together. This process can also be simplified to a formula:
Note that, <span>all other factors being equal, the present value of an annuity due is equal to the present value of an ordinary annuity multiplied by (1 + r).
Hint: Remember these formulas - you can use them to solve annuity-related questions directly, or to double-check the answers given by your calculator.
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