The value that a series of payments will grow to in the future is referred to as the:

Question

Quizplus · Accepted Answer

The future value of an annuity is the value that a series of payments will grow to in the future, assuming a certain interest rate. This is different from the future value of a single amount, which is the value that a single lump sum will grow to in the future. The present value of a single amount is the current value of a future lump sum, and the present value of an annuity is the current value of a series of future cash flows. Therefore, the correct choice is C, as it pertains specifically to a series of payments.

The Value That a Series of Payments Will Grow to in the Future