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Calculate the present value of an annuity of $100,000 received annually that begins today and...

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Calculate the present value of an annuity of $100,000 received annually that begins today and continues for 8 years, assuming a discount rate of 11.5%. What are the time periods? What is the annual interest / discount rate? What is the payment amount? What is the Future Value? What is the Present Value? Round all answers to the nearest dollar. Please make sure to include the proper sign and use commas. Ex: Your answer should be 10,000 not 10000.25

Answer & Explanation Solved by verified expert
3.9 Ratings (765 Votes)
To calculate the present value of an annuity that begins today we need to consider it as an annuity due The formula for the present value of an annuity due is PVtextdue PMT times left1 rright times left1 1 rnright r Where PMT is the payment    See Answer
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