Which of the following is false? A) To calculate the present value of a deferred annuity, determine

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Which of the following is false?

A) To calculate the present value of a deferred annuity, determine the present value of an ordinary annuity for the entire period and subtract the present value of the payments which were not received during the deferral period.

B) The future value of a deferred annuity is equal to the future value of an annuity not deferred.

C) If the first payment is received at the end of the fifth period, it means the ordinary annuity is deferred for five periods.

D) The present value of a deferred annuity is less than the present value of an annuity not deferred.

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

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Posted Date: Nov 25, 2022 10:00 AM

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Which of the following is false? A) To calculate the present value of a deferred annuity, determine

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Intermediate Accounting

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