A specific present value of an ordinary annuity factor for a given number of periods and a specific discount rate is equal to the cumulative sum of the present value of a single sum factors over all the discount rates for that specific number of periods.

Question

Quizplus · Accepted Answer

The present value of an ordinary annuity factor is the sum of the present values of equal cash flows occurring at regular intervals, discounted at a specific rate. It is not the cumulative sum of present value factors for single sums at different rates.

A Specific Present Value of an Ordinary Annuity Factor for a Given