Question

5.15

eBook 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. $800 per year for 16 years at 14%. $   $400 per year for 8 years at 7%. $   $500 per year for 8 years at 0%. $   Rework previous parts assuming they are annuities due. Present value of $800 per year for 16 years at 14%: $   Present value of $400 per year for 8 years at 7%: $   Present value of $500 per year for 8 years at 0%: $

Answer 1

B 1 a) Present value of ordinary annuity $6,258.97 =PV(10%,16,-800,0,0) 2 b) Present value of ordinary annuity | $2 $2,585.29 =PV(5%,8,-400,0,0) 3 c) Present value of ordinary annuity | $1,200.00 1=PV(0%.8.-900,0,0) 4 d) Present value of annuity due Present value of annuity due $6,884.86 =PV(10%,16,-800,0,1) $ 2,714.55 =PV(5%,8,-400,0,1) $7,200.00 =PV(0%,8,-900,0,1) Present value of annuity due

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