Question

is the sum of present value of all the payment to be made during the entire term of the annuity​

Answer 1

Answer:

The present value of an annuity is the total cash value of all of your future annuity payments, given a determined rate of return or discount rate.

Answer 2

Yes, the sum of the present value of all the payments to be made during the entire term of the annuity.

• The present value of a future sum of money or stream of cash flows with a preset rate of return is the sum of money or stream of cash flows' current worth (PV).

• The optimal discount rate is the key to accurately valuing future cash flows, whether they be earnings or debt obligations.

• The amount of money necessary today to fund a series of future annuity payments is known as the present value of an annuity.