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Future Value of an Ordinary Annuity The future value of an ordinary annuity of $1 a. Tells how much one dollar will accrue to in

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Future Value of an Ordinary Annuity The future value of an ordinary annuity of $1 a. Tells how much one dollar will accrue to in a given number of periods at a given interest rate. b. Tells the present value of a series of payments of one dollar at the end of each period. Oc. Tells how much one dollari che future is worth today, given the interest rate and the number of periods. d. Tells how much a series of end-of-the-period cash flows of one dollar occurring at regular intervals will accrue to at a given periodic interest rate. Present Value Which formula is used to compute the present value of a single sum? a. PV = FV x (1 + i)" b. PV = FV + (1 x 1)" Oc. PV = FV * 1/(1 + i)" d. PV = FV - FV x (1 + i)

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