What is the present value of a 5-year ordinary annuity with annual payments of $200,evaluated at a 15 percent interest rate?
A) $670.43
B) $842.41
C) $1,169.56
D) $1,348.48
E) $1,522.64

Question

Quizplus · Accepted Answer

PV = PMT × 11ea7fdb_fc1b_8a14_a768_497a7b3ef7f9_TB2902_11 PV = 200 × 11ea7fdb_fc1b_8a15_a768_2ff17070a192_TB2902_11 = $670.43
Using a financial calculator:
N = 5, I/Y = 15, PMT = -200, FV = 0, cpt PV = $670.43

What Is the Present Value of a 5-Year Ordinary Annuity