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What is the present value of an annuity that pays $290 at the beginning of each...

What is the present value of an annuity that pays $290 at the beginning of each year for 24 years if the annuity earns 17% annually?

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Answer #1

We can use the present value of the annuity due formula:

Where,
PVA = Present value of the annuity
A = Annuity or payment
i = Interest rate in decimal form
n = Number of years

Therefore,

Therefore, the present value is $1,949.79

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