What is the present value factor for an annuity of five periods and an interest rate of 10 percent? a. 1.6105

b. 6.1051

c. 3.7908

d. 7.7217

Answer: The correct answer is choice c - 3.7908

Explanation: The formula to calculate the annuity present value factor is:

(1 - (1+r) ^-n) / rate

Using the information from the problem, r equals the rate, which is. 1 and n equals the number of periods, which is 5.

Now, putting the information into the formula:

(1 - (1 +.1) ^-5) /.1 = Present value annuity factor

3.7908 = Present value annuity factor