For each of the following annuities, calculate the present value. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
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Annuity 1.
Using financial calculator to calculate the present value of annuity
Inputs: N= 7
I/y= 8%
Pmt= 2,550
Fv= 0
Pv= compute
We get, present value of annuity 2,550 as $13,276.24
Annuity 2
Using financial calculator to calculate the present value of annuity
Inputs: N= 9
I/y= 7%
Pmt= 1,445
Fv= 0
Pv= compute
We get, present value of annuity 1,445 as $9,414.51
Annuity 3
Using financial calculator to calculate the present value of annuity
Inputs: N= 20
I/y= 9%
Pmt= 12,955
Fv= 0
Pv= compute
We get, present value of annuity 12,955 as $118,260.31
Annuity 4
Using financial calculator to calculate the present value of annuity
Inputs: N= 26
I/y= 11%
Pmt= 32,900
Fv= 0
Pv= compute
We get, present value of the annuity 32,900 as $279,257.12
All the answers are in bold
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