Question

Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round...

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%: $  

Homework Answers

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

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