What is the present value of an annuity due that pays 1500


1. What is the present value of an annuity due that pays $1,500 per year for 8 years, assuming the annual discount rate is 8 percent?

2. What is the present value of a perpetuity that pays $3,700 per year if the discount rate is 7.5 percent?

3. You borrow $90,000 and must make annual loan payments of $12,515.88 for 15 years, starting at the end of the year. What interest rate are you being charged?

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Financial Management: What is the present value of an annuity due that pays 1500
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