Question

Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.

a. $200 per year for 14 years at 8%.

b. $100 per year for 7 years at 4%.

c. $700 per year for 7 years at 0%.

d. Rework previous parts assuming they are annuities due.

-Present value of $200 per year for 14 years at 8%: $

-Present value of $100 per year for 7 years at 4%: $

-Present value of $700 per year for 7 years at 0%: $

Answer 1

a. $200 per year for 14 years at 8%. = $1648.85

b. $100 per year for 7 years at 4%. = $600.21

c. $700 per year for 7 years at 0%. = $4900.00

d. Rework previous parts assuming they are annuities due.

-Present value of $200 per year for 14 years at 8%: $1780.76

-Present value of $100 per year for 7 years at 4%: $624.21

-Present value of $700 per year for 7 years at 0%: $4900.00