Zane Set Designs Company has received an award which entitles it to receive annual payments of $10,000 at the end of each year for the next ten years.Which of the following is used to calculate today's value of this award?

Question

Quizplus · Accepted Answer

The present value of an ordinary annuity of $1 is used to calculate the present value of a series of equal payments (in this case, $10,000 per year) made at the end of each year for a specified number of years (in this case, 10 years).

Zane Set Designs Company Has Received an Award Which Entitles