The present value of an annuity due of t payments of $1 per period is the same as Multiple Choice (C) (1 + r) times the present value of an equivalent ordinary annuity. (A) the present value of an ordinary annuity of t payments. (B) $1 plus the present value of an ordinary annuity with t -1 payments. None of the answers are correct. (B) and (C).

The present value of an annuity due of t payments of $1 per period is the same as Multiple Choice (C) (1 + r) times the present value of an equivalent ordinary annuity. (A) the present value of an ordinary annuity of t payments. (B) $1 plus the present value of an ordinary annuity with t -1 payments. None of the answers are correct. (B) and (C).

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter11: Liabilities: Bonds Payable

Section: Chapter Questions

Problem 11E

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