What is the present value annuity factor at a discount rate of 11% for 8 years?
A) 5.7122
B) 11.8594
C) 5.1461
D) None of the above

Question

Quizplus · Accepted Answer

The present value annuity factor at a discount rate of 11% for 8 years is calculated using the formula PVAF = (1 - (1+r)^-n)/r, where r is the discount rate and n is the number of years. Plugging in the values, we get PVAF = (1 - (1+0.11)^-8)/0.11, which simplifies to PVAF = 5.1461. Therefore, the best choice is C.

What Is the Present Value Annuity Factor at a Discount