a-1. Calculate the present value of an annual payment of $920.00 you would recei

Question

a-1. Calculate the present value of an annual payment of $920.00 you would received for 10 years if the interest rate is 7.01%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value $ a-2. Calculate the present value of an annual payment of $782.00 you would received for 17 years if the interest rate is 7.01%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value $ b-1. Calculate the present value of an annual payment of $920.00 you would received for 10 years if the interest rate is 12.90%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value $ b-2. Calculate the present value of an annual payment of $782.00 you would received for 17 years if the interest rate is 12.90%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Explanation / Answer

a-1. Calculate the present value of an annual payment of $920.00 you would received for 10 years if the interest rate is 7.01%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present value = Annual Payment*(1-(1+r)^-n)/r

Present value = 920*(1-(1+7.01%)^-10)/7.01%

Present value = $ 6458.71

a-2. Calculate the present value of an annual payment of $782.00 you would received for 17 years if the interest rate is 7.01%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present value = Annual Payment*(1-(1+r)^-n)/r

Present value = 782*(1-(1+7.01%)^-17)/7.01%

Present value = $ 7629.56

b-1. Calculate the present value of an annual payment of $920.00 you would received for 10 years if the interest rate is 12.90%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present value = Annual Payment*(1-(1+r)^-n)/r

Present value = 920*(1-(1+12.90%)^-10)/12.90%

Present value = $ 5012.16

b-2. Calculate the present value of an annual payment of $782.00 you would received for 17 years if the interest rate is 12.90%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present value = Annual Payment*(1-(1+r)^-n)/r

Present value = 782*(1-(1+12.90%)^-17)/12.90%

Present value = $ 5291.43

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