Tuesday, July 6, 2021

What is the present value of an annuity of $100 received at the end of each year for seven years?

What is the present value of an annuity of $100 received at the end of each year for seven years? The first payment will be received one year from today (round to nearest $10). The discount rate is 13%.  To solve this problem with a financial calculator, the correct choice is
A) N=7, i=13, PMT= 100, FV=0, solve for PV
B) N=7, i=13, PV= 100, FV=0, solve for FV
C) N=7, i=13, PMT= 100, FV=100, solve for PV
D) N=7, i=.13, PMT= 100, FV=0, solve for PV

What is the present value of an annuity of $27 received at the beginning of each year for the next six years? The first payment will be received today, and the discount rate is 10% (round to nearest $10).

A) $120
B) $130
C) $100
D) $110

What is the present value of $150 received at the beginning of each year for 16 years? The first payment is received today. Use a discount rate of 9%, and round your answer to the nearest $10.
A) $1,360
B) $1,480
C) $1,250
D) $1,210


What is the present value of $250 received at the beginning of each year for 21 years? Assume that the first payment is received today. Use a discount rate of 12%, and round your answer to the nearest $10.
A) $1,870
B) $2,090
C) $2,117
D) $3,243

What is the present value of an annuity of $12 received at the end of each year for seven years? Assume a discount rate of 11%. The first payment will be received one year from today (round to the nearest $1).
A) $25
B) $40
C) $57
D) $118


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