Find the present value of an ordinary annuity which has payments of $600600 per year...

Question

Question

Find the present value of an ordinary annuity which has payments of

$600600

per year for

1818

years at

55%

compounded annually.

Answer 1

Answer #1

Present value = P{[(1 – (1 + r)^-n] / r}

Present value = $600{[(1 - (1.05)^-18] / 0.05}

Present value = $7,013.75

Answer 2

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