Question:
Explain the relationship between Table 2, Present Value of $1, and Table 4, Present Value of an Ordinary
Annuity of $1.
Answer:
Table 2 lists the present value of $1 factors for various time periods and interest rates. The factors in
Table 4 are simply the summation of the individual PV of $1 factors from Table 2.
Explain the relationship between Table 2, Present Value of $1, and Table 4, Present Value of an Ordinary
Annuity of $1.
Answer:
Table 2 lists the present value of $1 factors for various time periods and interest rates. The factors in
Table 4 are simply the summation of the individual PV of $1 factors from Table 2.
