24.5.2 - Present Value of an Annuity (PVA)
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Practice Questions
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What is PVA?
💡 Hint: Think about what 'present value' means.
What does PMT stand for in the PVA formula?
💡 Hint: Consider the amount you receive or pay at each interval.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does PVA stand for?
💡 Hint: Think about the purpose of this concept.
True or False: An annuity is always made at the beginning of each period.
💡 Hint: Recall the two types of annuities.
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Challenge Problems
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Determine the present value of an annuity that pays ₹15,000 at the end of each year for 10 years at an interest rate of 7%.
💡 Hint: Make sure to substitute correctly in the PVA formula.
How would you adjust your PMT if the interest rate increased to 9% but you still wanted the same PVA of ₹100,000?
💡 Hint: Think about how increasing the interest rate could decrease the required PMT.
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