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Determine the current value of the annuity

Problem: A 5-year annuity of ten $5,300 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now.

1. If the discount rate is 12 percent compounded monthly, what is the value of this annuity five years from now?

2. If the discount rate is 12 percent compounded monthly, what is the value three years from now?

If the discount rate is 12 percent compounded monthly, what is the current value of the annuity?

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Finance Basics: Determine the current value of the annuity

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