The value which converts series of equal payments in to the value received at end time of investment is classified as ____________?
Correct answer: B. future value of annuity
- A. present value of annuity
- B. future value of annuity
- C. decreased value of annuity
- D. increased value of annuity
Explanation
Future value of an annuity accumulates a series of equal payments to their value at the end of the investment period. Present value instead discounts those payments back to the beginning.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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