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    Finance - Math question from professional exam

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    Given below are the present value factors for $1.00 discounted as 8% for 1 to 5 periods. Each of the following items is based on 8% interest compounded annually from day of deposit to day of withdrawal.

    Present Value of $1
    Discounted at
    Periods 8% per Period
    1 0.926
    2 0.857
    3 0.794
    4 0.735
    5 0.681

    1) CPA Exam - Which of the following should be used to calculate the amount of the equal periodic payments that could be equivalent to an outlay of $3000 at the time of the last payment?

    a) Amount of 1
    b) Amount of an annuity of 1
    c) Present value of an annuity of 1
    d) Present value of 1

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