Homework Answers
Annuity to be received at the end of each year = $50,000
Timer period (n) = 5 years
Interest rate (i) = 6%
Present value annuity factor at 6% interest for 5 years ( Present value annuity factor 6%, 5) = 4.21236
Present value annuity = Annuity to be received at the end of each year x Present value annuity factor (6%, 5)
= 50,000 x 4.21236
= $210,628
First option is correct option.
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