The present value of an annuity of $1 table could be constructed using the factors contained in the present value of $1 table.

Question

Quizplus · Accepted Answer

The present value of an annuity of $1 table is constructed by multiplying the factors from the present value of $1 table by the appropriate annuity factor for the number of periods and interest rate. Therefore, the present value of $1 table serves as the building blocks for constructing the present value of an annuity of $1 table.

The Present Value of an Annuity of $1 Table Could