Final answer:
The present value of a single sum (Appendix B) is related to the present value of an annuity (Appendix D) through the concept of discounting.
Step-by-step explanation:
The present value of a single sum in Appendix B is related to the present value of an annuity in Appendix D through the concept of discounting. The present value of a single sum is the value of a future cash flow at the present time, while the present value of an annuity is the sum of the present values of a series of cash flows received at regular intervals.
To calculate the present value of a single sum, we use the formula:
Present Value of a Single Sum = Future Value / (1 + Interest Rate)^n
To calculate the present value of an annuity, we use the formula:
Present Value of Annuity = Cash Flow / Interest Rate * (1 - (1 + Interest Rate)^-n)