Which of the following formulas is INCORRECT?
A)PV of a growing annuity = C ×
B)PV of an annuity = C ×
C)PV of a growing perpetuity =
D)PV of a perpetuity =

Question

Which of the following formulas is INCORRECT?
A)PV of a growing annuity = C × 
B)PV of an annuity = C × 
C)PV of a growing perpetuity = 
D)PV of a perpetuity =

Quizplus · Accepted Answer

The formula given for the present value of a growing annuity is incorrect. The correct formula is PV = C * [(1 - (1 + g)^-n)/(r - g)], where PV is the present value, C is the constant periodic payment, g is the growth rate, r is the discount rate, and n is the number of periods.

Which of the Following Formulas Is INCORRECT