Question

Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.

1. $200 per year for 12 years at 4%.

   $  

2. $100 per year for 6 years at 2%.

   $  

3. $1,000 per year for 6 years at 0%.

   $  

4. Rework previous parts assuming they are annuities due.

   Present value of $200 per year for 12 years at 4%: $  

   Present value of $100 per year for 6 years at 2%: $  

   Present value of $1,000 per year for 6 years at 0%: $  

Answer 1

a.	Present Value		=-pv(rate,nper,pmt,fv,0)			Where,
			= $ 1,877.01			rate	=	4%
						nper	=	12
						pmt	=	200
						fv	=	0
b.	Present Value		=-pv(rate,nper,pmt,fv,0)			Where,
			= $ 560.14			rate	=	2%
						nper	=	6
						pmt	=	100
						fv	=	0
c.	Present Value		=-pv(rate,nper,pmt,fv,0)			Where,
			= $ 6,000.00			rate	=	0%
						nper	=	6
						pmt	=	1000
						fv	=	0
d.
	Present Value		=-pv(rate,nper,pmt,fv,1)			Where,
			= $1,952.10			rate	=	4%
						nper	=	12
						pmt	=	200
						fv	=	0
	Present Value		=-pv(rate,nper,pmt,fv,1)			Where,
			=$ 571.35			rate	=	2%
						nper	=	6
						pmt	=	100
						fv	=	0
	Present Value		=-pv(rate,nper,pmt,fv,1)			Where,
			= $ 6,000.00			rate	=	0%
						nper	=	6
						pmt	=	1000
						fv	=	0