6. Chapter MC, Section .05, Problem 097 What is the PV of an ordinary annuity with...

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Answer 1

Answer #1

PV =

[1-(4+5)-) [1-(1+r)-n LT P= Periodic Payment r=rate per period n = number of periods

PV = 16, 200+ 1-(1 +0.045)-5 PV = 16, 200* 0.045

PV = 16,200 * 4.3899

PV = $71,117.62 (Option E)

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Answer 2

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