Question

Use Table 12-2 to calculate the present value (in $) of the ordinary annuity. (Round your answer to the nearest cent.) Annuity Payment Payment Frequency Time Period (years) Nominal Rate (%) Interest Compounded Present Value of the Annuity $3,000 every year 20 4 annually $

Use Table 12-2 to calculate the present value (in $) of the ordinary annuity. (Round your answer to the nearest cent.)

Annuity Payment	Payment Frequency	Time Period (years)	Nominal Rate (%)	Interest Compounded	Present Value of the Annuity
$3,000	every year	20	4	annually	$

Answer 1

PV =

[1-(4+5)-) [1-(1+r)-n LT P= Periodic Payment r=rate per period n = number of periods

PV = 3000* 1-(1+0.04) -20 PV = 3000* 1 0 .04

PV = 3000 * 13.59033

PV = $40,771.0