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Determine the present value of an annuity due of $5,000 per year for 8 years...

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Question

Finance

Determine the present value of an annuity due of

$5,000

per year for

8

years discounted back to the present at an annual rate of

9

percent. What would be the present value of this annuity due if it were discounted at an annual rate of

14

percent?

Question content area bottom

Part 1

a.If the annual discount rate is

9

percent, the present value of the annuity due is

$enter your response here.

(Round to the nearest cent.)

Part 2

b.If the annual discount rate is

14

percent, the present value of the annuity due is

$enter your response here.

(Round to the nearest cent.)

Answer & Explanation Solved by verified expert
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