3. Find the present value of a 30-year annuity-immediate which pays $2,000 each year. Assume an...

Question

Question

3. Find the present value of a 30-year annuity-immediate which pays $2,000 each year. Assume an effective annual interest rat

Answer 1

Answer #1

The answer has been presented in the supporting. For detailed answer refer to the supporting sheet.

Answer 3 Present value of annuity 4 = annual payment * present value annuity 5 = 2000 * ((1-(1+i)^-n)/i) 6 = 2000 * ((1-(1.08

Answer 2

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