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 14 years at 12%.

   $  

2. $100 per year for 7 years at 6%.

   $  

3. $300 per year for 16 years at 0%.

   $  

4. Rework previous parts assuming they are annuities due.

   Present value of $200 per year for 14 years at 12%: $  

   Present value of $100 per year for 7 years at 6%: $  

   Present value of $300 per year for 16 years at 0%: $  

Answer 1

Answer summary

Pv of ordinary annuity:

A) 1325.63

B) 558.24

C) 4800.00

PV of annuity due:

A) 1484.71

B) 591.73

C) 4800.00