Find the present value of an annuity due that pays $1,600.00 at the beginning of each...

Find the present value of an annuity due that pays $1,600.00 at the beginning of each quarter for 4 years, if interest is earned at a rate of 4%, compounded quarterly.

The present value is $___ (Round to 2 decimal places.)

Expert Solution

Present Value:-

Quarter	Amount	Present value @4%	Present value
1	1600	0.9615385	1,538.46
2	1600	0.9245562	1,479.29
3	1600	0.8889964	1,422.39
4	1600	0.8548042	1,367.69
5	1600	0.8219271	1,315.08
6	1600	0.7903145	1,264.50
7	1600	0.7599178	1,215.87
8	1600	0.7306902	1,169.10
9	1600	0.7025867	1,124.14
10	1600	0.6755642	1,080.90
11	1600	0.6495809	1,039.33
12	1600	0.6245970	999.36
13	1600	0.6005741	960.92
14	1600	0.5774751	923.96
15	1600	0.5552645	888.42
16	1600	0.5339082	854.25

	Present value		18,643.67

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Find the present value of an annuity due that pays $1,600.00 at the beginning of each...

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