What is the eight-year present value annuity factor at a discount rate of 11 percent?
A)5.7122
B)11.8594
C)5.1461
D)6.9158

Question

Quizplus · Accepted Answer

The eight-year present value annuity factor at a discount rate of 11 percent is calculated using the formula:

PVAF = (1 - (1 / (1+r)^n)) / r

Where PVAF is the present value annuity factor, r is the discount rate, and n is the number of periods.

Plugging in the numbers, we get:

PVAF = (1 - (1 / (1+0.11)^8)) / 0.11
PVAF = 5.1461

Therefore, the answer is C, 5.1461.

What Is the Eight-Year Present Value Annuity Factor at a Discount