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a. What is the present value of a 3-year annuity of $190 if the discount rate...

a. What is the present value of a 3-year annuity of $190 if the discount rate is 6%?

b. What is the present value of the annuity in (a) if you have to wait an additional year for the first payment? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

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PRESENT VALUE = $507.87 Present Value of annuity = P 1-n P r n = = = PV = 190 6.00% 3 190 1- (1+0.06)^-3 10.06 190 x 2.6730 5

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