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26-02-2020
Business

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A specific present value of an ordinary annuity factor for a given number of periods and a specific discount rate is equal to the cumulative sum of the present value of single sum factors over the given number of periods for that discount rate.1. True2. False

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sadddamkashmiri801 sadddamkashmiri801

26-02-2020

Answer:

True

Explanation:

This is true because if we add all the discounts factor of a particular rate 10% (suppose) for 10 years (suppose). Then the sum will be equal to the annuity factor at 10 years time. This is what the statement is saying above so it is 110% true.

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