The factor for the present value of an annuity at 8% for 10 years is 6.7101.This means that an annuity of ten $15,000 payments at 8% has a present value of $2,235.

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Quizplus · Accepted Answer

The present value of an annuity is calculated by multiplying the annuity payment by the present value factor. For an annuity of $15,000 payments at 8% for 10 years, the present value would be $15,000 * 6.7101 = $100,651.50, not $2,235.

The Factor for the Present Value of an Annuity at 8