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Hi sir , if a question states that there is a fifteen year annuity of $300 starting at once. Interest rates are 6%
Does the cashflow of $300 start from
Year 0 – Year 15 ?OR
Year 0 – Year 14 ?
Because the answer key in my complete textbook shows that for this question,
The annuity factor
= 9.295 + 1
= 10.295When i checked the annuity table,
the 9. 295 is actually for 14 years not 15 years . Thats why.
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