Question
1) The present value factor for annuities is calculated as: (1 + present value factor)/r (1 present value factor)/r Present value factor + (1/r) (Present
1) The present value factor for annuities is calculated as:
| (1 + present value factor)/r | ||
| (1 present value factor)/r | ||
| Present value factor + (1/r) | ||
| (Present value factor*r) + (1/r) |
2) The future value factor for annuities is calculated as:
| Future value factor + r | ||
| (1/r) + (future value factor*r) | ||
| (1/r) + future value factor | ||
| (Future value factor 1)/r | ||
| (Future value factor + 1)/r |
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Business Finance
Authors: Brian Watts
8th Edition
0712110720, 978-0712110723
