PRESENT VALUE OF AN ANNUITY Find the present values of these ordinary annuities. Discounting occurs once a...

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PRESENT VALUE OF AN ANNUITY
Find the present values of these ordinaryannuities. Discounting occurs once a year. Round your answersto the nearest cent.
$700 per year for 16 years at 6%.
$
$350 per year for 8 years at 3%.
$
$800 per year for 6 years at 0%.
$
Rework previous parts assuming that they are annuitiesdue. Round your answers to the nearest cent.
$700 per year for 16 years at 6%.
$
$350 per year for 8 years at 3%.
$
$800 per year for 6 years at 0%.
$

Answer & Explanation Solved by verified expert

3.7 Ratings (294 Votes)

aInformation provided Annuity 700 Time 16 years Interest rate 6 The present value of ordinary annuity is computed by entering the below in a financial calculator in the default END mode PMT 700 N 16 IY 6 Press the CPT key and PV to calculate the present value of ordinary annuity The value obtained is 707413 Therefore the present value of ordinary annuity is 707413 b Information provided Annuity 350 Time 8 years Interest rate 3 The present value of ordinary annuity is computed by entering the below in a financial calculator in the default END mode PMT 350 N 8 IY 3 Press the CPT key and PV to calculate the present value of ordinary annuity The value See Answer

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PRESENT VALUE OF AN ANNUITYFind the present values of these ordinaryannuities. Discounting occurs once a year. Round your answersto the nearest cent.$700 per year for 16 years at 6%.$ $350 per year for 8 years at 3%.$ $800 per year for 6 years at 0%.$ Rework previous parts assuming that they are annuitiesdue. Round your answers to the nearest cent.$700 per year for 16 years at 6%.$ $350 per year for 8 years at 3%.$ $800 per year for 6 years at 0%.$