Question
To find the present value of an annuity of $100 per year for 5 years at 10 percent per year using the tables, look up the present value interest factor which is Blank______ and multiply that by Blank______.
Multiple choice question.
3.7908; $100
4.3553; 10
3.1699; 10
7.7217; $100
Multiple choice question.
3.7908; $100
4.3553; 10
3.1699; 10
7.7217; $100
Answers
GPT-4o mini
To find the present value of an annuity of $100 per year for 5 years at 10 percent per year, you will need to look up the Present Value Interest Factor of Annuity (PVIFA) for 5 years at 10%.
From the present value annuity tables, the PVIFA for 5 years at 10 percent is approximately **3.7908**.
To calculate the present value of the annuity, you would then multiply this factor by the payment amount, which in this case is **$100**.
Thus, the correct answer is:
**3.7908; $100**.
From the present value annuity tables, the PVIFA for 5 years at 10 percent is approximately **3.7908**.
To calculate the present value of the annuity, you would then multiply this factor by the payment amount, which in this case is **$100**.
Thus, the correct answer is:
**3.7908; $100**.