The present value of an ordinary annuity of $2,350 each year for 8 years,assuming an opportunity cost of 11 percent,is: (Round to the nearest whole dollar.)
A) $1,020
B) $27,869
C) $18,800
D) $12,093

Question

Quizplus · Accepted Answer

PV = PMT × 11ea7fdb_fc1b_8a16_a768_cbd8c89f3168_TB2902_11 PV = 2,350 × 11ea7fdb_fc1b_8a17_a768_df69c3828ad0_TB2902_11 = $12,093.39
Using a financial calculator:
N = 8, I/Y = 11, PMT = -2,350, FV = 0, cpt PV = $12,093.39

The Present Value of an Ordinary Annuity of $2,350 Each