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26-02-2021
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If the present value annuity factor for 10 years at 10 percent interest rate is 6.1446, what is the present value annuity factor for an equivalent annuity due

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Tundexi Tundexi

27-02-2021

Answer:

6.7590

Explanation:

Present value annuity factor for annuity due = 1 + Present value annuity factor for ordinary annuity - PVF(10%, 10 years)

Present value annuity factor for annuity due = 1 + 6.1446 - 0.3856

Present value annuity factor for annuity due = 7.1446- 0.3856

Present value annuity factor for annuity due = 6.7590

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