Question

Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. a. $800 per year for 14 years at 10%. b. $400 per year for 7 years at 5%. c. $1,000 per year for 7 years at 0% d. Rework previous parts assuming they are annulties due. Present value of $800 per year for 14 years at 10%:$ Present value of $400 per year for 7 years at 5%: $ Present value of $1,000 per year for 7 years at 0%:$

Answer 1

A 1 a) Present value of ordinary annuity 5.893.35 =PV(10%,14,-800,0,0) 2 b) Present value of ordinary annuity 3 C) Present value of ordinary annuity 14.55 =PV(5%,7,-400,0,0) $7,000.00 =PV(0%,7,-1000,0,0) $6,482.68 =PV(10%,14,-800,0,1) $2.430.28 =PV(5%,7,-400,0,1) 4 d) Present value of annuity due Present value of annuity due Present value of annuity due 7,000.00 =PV(0%,7,-1000,0,1)

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