The present value factor of an annuity that will mature in 20 years at an interest rate of 8% is 9.8181474.
What is the present value interest factor?
It can be found by using the present value of an annuity formula of:
= Amount x ( 1 - ( 1 + rate) ^ - number of periods) / Rate
As there is no amount, solving gives:
= ( 1 - ( 1 + 8%) ⁻²⁰) / 8%
= 9.8181474
In conclusion, it is 9.8181474.
Find out more on present value of annuity at https://brainly.com/question/25792915.
