(Related to Checkpoint 6.2) (Present value of an ordinary annuity) What is the present value of...

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Question

(Related to Checkpoint 6.2) (Present value of an ordinary annuity) What is the present value of $3,500 per year for 9 years d

Answer 1

Answer #1

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Please find the answer below.

Statement showing computation:

Amount= $3500

Number of years (n)= 9 years

Rate= 9%

Present value= Amount*PVAF@9% for 9 years

Present value= 3500*5.99525= 20983.38

Present value= $20983.38

Answer 2

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