Question

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.NEED ANSWER ASAP / ANSWER NEVER USED BEFORE, COMPLETELY NEW ANSWER PLEASE

a.)

Find the present value of the following ordinary annuities. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press PV, and find the PV of the annuity due.) Do not round intermediate calculations. Round your answers to the nearest cent.

1. $400 per year for 10 years at 14%.

   $  

2. $200 per year for 5 years at 7%.

   $  

3. $400 per year for 5 years at 0%.

   $  

4. Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due.

   Present value of $400 per year for 10 years at 14%: $  

   Present value of $200 per year for 5 years at 7%: $  

   Present value of $400 per year for 5 years at 0%: $  

Answer 1

The formula for this problem is PV=PMT*[1-[(1/1+r)^n]/r]

For the second part of the problem for annuities paid at the beginning take your answers for 1 & 2 and times it by (1+r). For the third one it is the same answer as you got for #3 because there is no interest rate. 

PMT	400	200	400
R	0.14	0.07	0
N	10	5	5
1+r	1.14	1.07
1/(1+r)	0.877193	0.934579
(1/1+r)^n	0.2697438	0.712986
1-(1/1+r^n)	0.7302562	0.287014
/r	5.2161156	4.100197
PMT*	$  2,086.45	$  820.04	$  2,000.00	400*5
ANSWERS	1) $2086.45	2) $820.04	3) $2000.00
	$  2,378.55	$  877.44
ANSWERS	4) $2,378.55	$877.44	$2,000.00