In order to compute the present value of an annuity, it is necessary to know the 1. discount rate. 2. number of discount periods and the amount of the periodic payments or receipts. ○ 1 O something in addition to 1 and 2 O both 1 and 2 ○ 2

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
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In order to compute the present value of an annuity, it is necessary to know the
1.
discount rate.
2.
number of discount periods and the amount of the periodic payments or receipts.
○ 1
O something in addition to 1 and 2
O both 1 and 2
○ 2
Transcribed Image Text:In order to compute the present value of an annuity, it is necessary to know the 1. discount rate. 2. number of discount periods and the amount of the periodic payments or receipts. ○ 1 O something in addition to 1 and 2 O both 1 and 2 ○ 2
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