Question

What is the PV of an annuity due with 10 payments of $2,700 at an interest rate of 6.5%?

Answer 1

Calculating the Present Value of annuity due of 10 payments amounting $2700:-

Where, C= Periodic Payments = $2700

r = Periodic Interest rate = 6.5%

n= no of periods = 10

Note- Assuming Interest rate is periodic with per payment.

Present value = $20,671.48

So, the PV of an annuity due is $20,671.48

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