1. If the future value annuity factor at 10% and 5 years is 6.1051, calculate the equivalent present value annuity factor  

a. 6.1051 

b. 3.7908 

c. 6.7156 

d. None of the given ones 

 

2. If the present value annuity factor at 10% APR for 10 years is 6.1446, what is the equivalent future value annuity factor?  

a. 3.108 

b. 15.9374 

c. 2.5937 

d. None of the above 

 

3. If the present value annuity factor at 12% APR for 5 years is 3.6048, what is the equivalent future value annuity factor?  

a. 2.0455 

b. 6.3529 

c. 1.7623 

d. None of the above 

 

4. Which of the following statements is true?  

a. Present value of an annuity due is always less than the present value of an equivalent 

annuity factor for a given interest rate 

b. The present value of an annuity approaches the present value of a perpetuity as n goes to infinity for a given interest rate 

c. Both A and B are true 

d. Both A and B are false 

 

    • 10 years ago
    A+ Answers
    NOT RATED

    Purchase the answer to view it

    blurred-text
    • attachment
      18.doc