Q494
Value which converts series of equal payments in to value received at end time of investment is classified as
A.
present value of annuity
B.
future value of annuity
AnswerC.
decreased value of annuity
D.
increased value of annuity
Answer: Option B
Solution
Answer: Option B
Solution:
Value which converts series of equal payments in to value received at end time of investment is classified as future value of annuity. The future value of an annuity is the total value of annuity payments at a specific point in the future. This can help you figure out how much your future payments will be worth, assuming that the rate of return and the periodic payment does not change.