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What is the present value of a 8-year ordinary annuity with annual payments of $479, evaluated...

What is the present value of a 8-year ordinary annuity with annual payments of $479, evaluated at a 16 percent interest rate? Round it to two decimal places, i.e., 1234.45.

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Answer #1

Solution :

The present value of a 8-year ordinary annuity with annual payments of $479, evaluated at a 16 percent interest rate is

= $ 2,080.58

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

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