The factor for the present value of an annuity 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.

Question

Quizplus · Accepted Answer

To calculate the present value of an annuity, you multiply the periodic payment by the factor for the present value of an annuity. So, in this case, the calculation would be:

$2,000 x 4.3553 = $8,710.60

Therefore, the statement is true.

The Factor for the Present Value of an Annuity for 6