BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The table used for finding future value of an annuity is ____
A
PVF Table
B
PVAF Table
C
DCF Table
D
ACF Table
Explanation: 

Detailed explanation-1: -An annuity table represents a method for determining the future value of an annuity. The annuity table contains a factor specific to the future value of a series of payments, when a certain interest earnings rate is assumed.

Detailed explanation-2: -Also referred to as a “present value table, ” an annuity table contains the present value interest factor of an annuity (PVIFA), which you then multiply by your recurring payment amount to get the present value of your annuity.

Detailed explanation-3: -An annuity table is a tool used to determine the present value of an annuity. An annuity table calculates the present value of an annuity using a formula that applies a discount rate to future payments. An annuity table uses the discount rate and number of period for payment to give you an appropriate factor.

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