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Canvas →XCO DO 4 1/F questions from each chapter 4 theory questions from each chapter 4problems from each chapter You need to
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Answer #1

Solution) Amount ot be paid for annuity = Present Value of the annuity

Number of years (Nper) = 5 years

Annuity amount (PMT) = $24000

Rate = 4.5%

Since it is annuity due, so, Type = 1

Future Value (FV) = 0

PV can be calculated using the PV function in Excel as:

= PV(Rate, Nper, PMT, FV, Type)

= PV(4.5%, 5, 24000,0,1)

= -110,100.62

(Ignoring the negative sign)

PV = $110,100.62

The correct answer is C.

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