What is the six-year present value annuity factor at an interest rate of 9%?
A)7.5233
B)4.4859
C)1.6771
D)3.1432

Name: What is the six-year present value annuity factor at an interest rate of 9%? A)7.5233 B)4.4859 C)1.6771 D)3.1432
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Question

Quizplus · Accepted Answer

The formula for present value of an annuity factor is:
PVAF = [(1 - (1+i)^-n)/i]
where i is the interest rate and n is the number of years. Plugging in the values, we get:
PVAF = [(1 - (1+0.09)^-6)/0.09] = 4.4859
Therefore, the answer is B.

What Is the Six-Year Present Value Annuity Factor at an Interest