Use the following two columns of items to answer the matching questions below:
-timelines
A)a factor multiplied by a periodic savings level (annuity) to get the present value of the annuity
B)a series of equal payments that occur at the beginning of each period
C)diagrams that show payments over time

Question

Quizplus · Accepted Answer

A) a factor multiplied by a periodic savings level (annuity) to get the present value of the annuity
The correct term for this description is "Present Value of an Annuity Factor." This factor is used in finance to determine the present value of a series of future annuity payments. The present value of an annuity factor is calculated based on the interest rate and the number of periods over which payments will be made. It is used to discount the future annuity payments to their equivalent value in today's dollars, taking into account the time value of money.

Use the Following Two Columns of Items to Answer the Matching