What is the present value of an annuity in which 100 is


1. What is the present value of an annuity in which $100 is paid each year for 6 years, assuming a discount rate of 4% and the first payment is received one year from now?

Please round your answer to the nearest cent.

2. What is the present value of an annuity in which $100 is paid each year for 4 years, assuming a discount rate of 9% and the first payment is received one year from now?

Please round your answer to the nearest cent.

3. What is the present value of $100 paid each year forever, assuming a discount rate of 4% and the first payment is received one year from now?

Please round your answer to the nearest cent.

4. What is the present value of $400 paid each year forever, assuming a discount rate of 7% and the first payment is received one year from now?

Please round your answer to the nearest cent.

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the present value of an annuity in which 100 is
Reference No:- TGS02553612

Now Priced at $20 (50% Discount)

Recommended (90%)

Rated (4.3/5)