5-year regular annuity has a present value of $1,000,and if the interest rate is 10%,what is the amount of each annuity payment?
A) $240.42
B) $263.80
C) $300.20
D) $315.38
E) $346.87

Question

Quizplus · Accepted Answer

PV = PMT × 11ea7fdb_fc18_7d8b_a768_8782f341a007_TB2902_11 PMT = PV / 11ea7fdb_fc18_7d8c_a768_33bb302a9fab_TB2902_11 PMT = 1,000 / 11ea7fdb_fc18_7d8d_a768_79fe91331fb0_TB2902_11 = $263.80
Using a financial calculator:
N = 5, I = 10, PV = -1,000, FV = 0, cpt PMT = $263.80

5-Year Regular Annuity Has a Present Value of $1,000,and If