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Homework: Homework 3 Score: 0 of 10 pts P6-30 (similar to) 18 of 22 (17 complete

ID: 2809879 • Letter: H

Question

Homework: Homework 3 Score: 0 of 10 pts P6-30 (similar to) 18 of 22 (17 complete) HW Score: 56.82%, 125 of 220 pts Question Help * 18 9: (Present value of an annuity due) Determine the present value of an annuity due of $1,000 per year for 25 years discounted back to the present at an annual rate of 11 percent What would be the present value of this annuity due if it were discounted at an annual rate of 16 percent? 18 1 0 P a. If the annual dscount rato is 11 percent,the present value of the annuity due is sRound to the nearest cent) Enter your answer in the answer box and then click Check Answer to search

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars At 11% At 16% Amount of Annuity                   1,000.00              1,000.00 PVF for 25 years for annuity due                       9.3481                  7.0726 Present value of annuity due                   9,348.14              7,072.63 Time PVF at 11% PVF at 16%                                                                     -                              1.00                       1.00                                                                1.00                       0.9009                  0.8621                                                                2.00                       0.8116                  0.7432                                                                3.00                       0.7312                  0.6407                                                                4.00                       0.6587                  0.5523                                                                5.00                       0.5935                  0.4761                                                                6.00                       0.5346                  0.4104                                                                7.00                       0.4817                  0.3538                                                                8.00                       0.4339                  0.3050                                                                9.00                       0.3909                  0.2630                                                              10.00                       0.3522                  0.2267                                                              11.00                       0.3173                  0.1954                                                              12.00                       0.2858                  0.1685                                                              13.00                       0.2575                  0.1452                                                              14.00                       0.2320                  0.1252                                                              15.00                       0.2090                  0.1079                                                              16.00                       0.1883                  0.0930                                                              17.00                       0.1696                  0.0802                                                              18.00                       0.1528                  0.0691                                                              19.00                       0.1377                  0.0596                                                              20.00                       0.1240                  0.0514                                                              21.00                       0.1117                  0.0443                                                              22.00                       0.1007                  0.0382                                                              23.00                       0.0907                  0.0329                                                              24.00                       0.0817                  0.0284 PVF for 25 years for annuity due                       9.3481                  7.0726