What is the present value of an ordinary annuity of $1000 per month for 20 years discounted at 9% per annum (assuming monthly compounding)?
A)$9128.55
B)$111 144.95
C)$11 111.11
D)$18 508.02

Question

Quizplus · Accepted Answer

The present value of an ordinary annuity can be calculated using the formula for the present value of an annuity. Given the monthly payment, interest rate, and number of periods, the correct calculation results in approximately $111,144.95.

What Is the Present Value of an Ordinary Annuity of $1000