What is the formula for the present value of an ordinary annuity of 1?
A) $ \frac{(1+i)^{n-1}}{i} $

B) $ \frac{1}{(1+i)^{n}} $

C) $ (1+i)^{n} $

D) $ \frac{1-\left[1 /(1+i)^{n}\right]}{i} $

Question

What is the formula for the present value of an ordinary annuity of 1? 
A) $ \frac{(1+i)^{n-1}}{i} $

B) $ \frac{1}{(1+i)^{n}} $

C) $ (1+i)^{n} $

D) $ \frac{1-\left[1 /(1+i)^{n}\right]}{i} $

Quizplus · Accepted Answer

The formula for the present value of an ordinary annuity of 1 is $ \frac{1-\left[1 /(1+i)^{n}\right]}{i} $, where $i$ is the interest rate per period, and $n$ is the number of periods. This formula calculates the present value of a series of 1-unit payments made at the end of each period.

What Is the Formula for the Present Value of an Ordinary