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The present value interest factor for an annuity with an interest rate of 8 percent per year over 20 years is ____.

Sagot :

Parrain

The present value factor of an annuity that will mature in 20 years at an interest rate of 8% is 9.8181474.

What is the present value interest factor?

It can be found by using the present value of an annuity formula of:

= Amount x ( 1 - ( 1 + rate) ^ - number of periods) / Rate

As there is no amount, solving gives:

= ( 1 - ( 1 + 8%) ⁻²⁰) / 8%

= 9.8181474

In conclusion, it is 9.8181474.

Find out more on present value of annuity at https://brainly.com/question/25792915.

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