TVM: How would you show this in factor notation?

How would you show the present value of a sequence that gives you $5 in time period one and continues to give you $5 until time period 20?

Question options:

  • 5(P/A,i,20)
  • 5(P/5,i,20)
  • 5(P/A,i,5)
  • 20(P/A,i,5)

Answer: 5(P/A,i,20)

This is a constant series of 5 for 20 periods.

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