Final answer:
The given formula for the present value of an annuity factor in the question is incorrect. The correct formula includes an annuity payment per period (R), the interest rate per period (r), and the number of periods (n). The correct answer is b) False.
Step-by-step explanation:
The formula presented in the question for the present value of an annuity factor appears to be incorrect and contains some typographical errors. The correct formula for calculating the present value (PV) of an annuity is:
PV = R × {1 - (1 + r)^{-n}} / r
where R is the annuity payment per period, r is the interest rate per period, and n is the total number of periods. Therefore, the answer to the question is b) False.
When applying this formula, you can find the present value of a series of regular payments that are to be received in the future, taking into consideration the time value of money.