Find the present value of a 3-year r20000 ordinary annuity


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Find the present value of a 3-year, R20,000 ordinary annuity deposited into an account that pays 12% interest compounded monthly. Calculate the present value of the annuity in the following ways:

i. As three single cash flows discounted at the stated rate of interest

ii. As three single cash flows discounted at the effective rate of interest.

iii. As 3 year annuity discounted at the effective rate of interest.

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Finance Basics: Find the present value of a 3-year r20000 ordinary annuity
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