If an amount R is paid at the end of every year for ‘n’ years, then the net present value of the annuity at an interest rate of i is _________________?
Correct answer: B
Explanation
The present value of an ordinary annuity is given by the formula R * [1 - (1 + i)^-n] / i. This simplifies to R * [(1 - (1 + i)^-n) / i], which matches option B.