Question

8. Problem 5.15 (Present Value of an Annuity) eBook 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. $200 per year for 16 years at 6%. b. $100 per year for 8 years at 3%. C. $200 per year for 8 years at 0%. d. Rework previous parts assuming they are annuities due. Present value of $200 per year for 16 years at 6%: $ Present value of $100 per year for 8 years at 3%: $ Present value of $200 per year for 8 years at 0%:$

Answer 1

5-15)

A 1 a) Present value of ordinary annuity $ 2,021.18 =PV(6%,16,-200,0,0) 2 b) Present value of ordinary annuity 701.97 =PV(3%,8,-100,0,0) 3 C) Present value of ordinary annuity $ 1,600.00 =PV(0%,8,-200,0,0) 4 d) Present value of annuity due 2.142.45 =PV(6%,16,-200,0,1) 5 e) Present value of annuity due 6 g) Present value of annuity due $ $ 723.03 =PV(3%,8,-100,0,1) 1,600.00 =PV(0%,8,-200,0,1)

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