Question
In: Accounting
An annuity pays $1 at the end every odd year and $2 at the end of...
An annuity pays $1 at the end every odd year and $2 at the end of each even year (not counting year 0) for 10 years. If the effective annual rate is 6%, what is the present value of the annuity?
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Solutions
Expert Solution
Answer
| Present Value | |||
| Year | Project | PVF @6% | Present Value |
| Year 1 | 1.00 | 0.94340 | 0.94 |
| 2 | 2.00 | 0.89000 | 1.78 |
| 3 | 1.00 | 0.83962 | 0.84 |
| 4 | 2.00 | 0.79209 | 1.58 |
| 5 | 1.00 | 0.74726 | 0.75 |
| 6 | 2.00 | 0.70496 | 1.41 |
| 7 | 1.00 | 0.66506 | 0.67 |
| 8 | 2.00 | 0.62741 | 1.25 |
| 9 | 1.00 | 0.59190 | 0.59 |
| 10 | 2.00 | 0.55839 | 1.12 |
| Present Value | 10.93 | ||
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ekkarill92 answered 1 year agoRelated Solutions
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Show all works, and please show ur work it with math steps and
illustrations instead of excel tables!! Thank you! I will thumb up
if it's correct!
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