An annuity is set up that will pay $1,800 per year for nine years. What is the present value (PV) of this annuity given that the discount rate is 4%?
Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
=1800[1-(1.04)^-9]/0.04
=1800*7.435331611
=$13383.60(Approx).
An annuity is set up that will pay $1,800 per year for nine years. What is...
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