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Calculate the present value as of 1 January 2019 of a series of payments of $100...

Calculate the present value as of 1 January 2019 of a series of payments of $100 payable on the first day of each month during 2020, 2021 and 2022, assuming an effective rate of interest of 8% per annum. Calculate in Annuities due

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Answer #1
Present Value Of Annuity
c= Cash Flow 100
i= Interest Rate 0.6667%
n= Number Of Periods 36
Present Value Of An Annuity
= C*[1-(1+i)^-n]/i] *(1+i)
Where,
C= Cash Flow per period
i = interest rate per period
n=number of period
= $100[ 1-(1+0.00666667)^-36 /0.00666667] *(1+0.08)
= $100[ 1-(1.00666667)^-36 /0.00666667]*1.08
= $100[ (0.2127) ] /0.00666667*1.08
= $3,191.18*1.08
=$3212.44
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