Asked by Heath Gillette on Jul 01, 2024
Verified
Explain the concept of the present value of an annuity.
Present Value
The present worth of a future amount of money or series of cash flows, taking into account a certain rate of return.
Annuity
An economic product that delivers a constant payment stream to an individual, mainly used as a means of livelihood for people who are retired.
Concept
A general idea or understanding that serves as a foundation for developing theories, experiments, or innovations.
- Attain knowledge on the concepts of present and future value for annuities, including but not limited to, ordinary annuities and annuities due.
Verified Answer
KC
Keely Crimando1 week ago
Final Answer :
The present value of an annuity is the amount that can be invested now at the specified interest rate to yield a future series of equal periodic payments.
Learning Objectives
- Attain knowledge on the concepts of present and future value for annuities, including but not limited to, ordinary annuities and annuities due.