If the future value of an annuity is known,then the present value of the annuity can be found using the present value of a lump sum formula,even if the amount of each annuity payment is unknown.

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This is true because the present value of a lump sum formula can be used to calculate the present value of a series of cash flows, such as an annuity, even if the individual payment amounts are unknown as long as the future value and interest rate are known.

If the Future Value of an Annuity Is Known,then the Present