Q1. [1] § INVESTMENT BASICS § What is Investment? § What are various long-term financial options available for investment?
___________ is the sum of present values of all the cash inflows of this annuity.
- (A) Present value of a single cash flow
- (B) Future value of an annuity
- (C) The present value of annuity
- (D) The future value of a net cash flow
Previously asked in CBSE board exam
2025 92 Q5 (vi)
Generated by claude-sonnet-4-6 · 2026-06-15 07:06 · grounding rag
Model Answer
(C) The present value of annuity is the sum of present values of all the cash inflows of an annuity.
Explanation
The present value of an annuity refers to the total of discounted (present) values of all future cash inflows. Examiners expect you to select option (C) directly. The other options refer to different financial concepts — future values or single cash flows — which do not match the definition given.
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