Final answer:
The annuity transformation method is used to convert a present value annuity to an annuity due.
Step-by-step explanation:
The annuity transformation method is used to transform:
- A) a present value annuity to a future value annuity.
- B) a present value annuity to an annuity due.
- C) an ordinary annuity to an annuity due.
- D) a perpetuity to an annuity.
The correct answer is option B. The annuity transformation method is used to convert a present value annuity to an annuity due. An annuity due is a type of annuity where the payments are received or made at the beginning of each period, rather than at the end.