The present value of an annuity factor for 6 years at 10% is 4.3553. This implies that an annuity of six $2,000 payments at 10% would equal $8,710.60.
$2,000 x 4.3553 = $8,711

Name: The present value of an annuity factor for 6 years at 10% is 4.3553. This implies that an annuity of six $2,000 payments at 10% would equal $8,710.60. $2,000 x 4.3553 = $8,711
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Quizplus · Accepted Answer

The calculation provided is correct and shows that the present value of six $2,000 payments at a 10% discount rate equals $8,710.60.

The Present Value of an Annuity Factor for 6 Years