Question

In: Finance

which is the statement is true 1.the annuity factor is always less than 1 2.the annuity...

which is the statement is true

1.the annuity factor is always less than 1

2.the annuity factor can be greater than one and smaller than one

3.the annuity factor is always one higher Num

4.the annuity can be negative or positive

Solutions

Expert Solution

the annuity factor can be greater than one and smaller than one

Formula for annuity factor =(( (1+Rate)^years)-1) / Rate

Table of annuity factor:


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