Click here to read the eBook: Present Value of an Ordinary Annuity PRESENT VALUE

Question

Click here to read the eBook: Present Value of an Ordinary Annuity PRESENT VALUE OF AN ANNUITY Find the present values of these ordinary annuities. Discounting occurs once a year. Round your answers to a. $800 per year for 14 years at 16%. the nearest cent. e) b. $400 per year for 7 years at 8%. C. $300 per year for 4 years at 096. O Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent. d, $800 per year for 14 years at 16%. e, $400 per year for 7 years at 8%. , $300 per year for 4 years at 0%. O Icon Kev 25

Explanation / Answer

a.

present value=800*((1-(1+16%)^(-14))/16%)=4374.02

b.

present value=400*((1-(1+8%)^(-7))/8%)=2082.55

c.

present value=300/(1+0%)^1+300/(1+0%)^2+300/(1+0%)^3+300/(1+0%)^4=1200

d.

present value=(800*((1-(1+16%)^(-14))/16%))*(1+16%)=5073.87

e.

present value=(400*((1-(1+8%)^(-7))/8%))*(1+8%)=2249.15

f.

present value=300+300/(1+0%)^1+300/(1+0%)^2+300/(1+0%)^3=1200

the above is answer..

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