The factor for the present value of an annuity for 6 years at 10% is 4.3553. This implies that an annuity of six $2,000 payments at 10% would equal $8,710.60.
$2,000 * 4.3553 = $8,710.60

Question

Quizplus · Accepted Answer

The calculation provided in the question is correct and shows that an annuity of six $2,000 payments at 10% would equal $8,710.60, which matches the present value factor given. Therefore, the answer is true.

The Factor for the Present Value of an Annuity for 6