What is the present value of a $5,000 annual annuity due with payments over 10 years...

Question

Question

What is the present value of a $5,000 annual annuity due with payments over 10 years if interest rates are 6.0%?

business finance

Answer 1

Answer #1

annuity due means the payments are at beginning of the year

the present value is

=(PMT*((1-(1+r)^(-n))/r))*(1+r)

=(5000*((1-(1+6.0%)^(-10))/6.0%))*(1+6.0%)

=39008.46

the above is answer..

Answer 2

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