Saved Help Save & Exit Subn Check my work 9 Problem 5-21 Annuities (LO3) Calcula
ID: 2821911 • Letter: S
Question
Saved Help Save & Exit Subn Check my work 9 Problem 5-21 Annuities (LO3) Calculate the present value of the following o-1. Annual payment of $975 for 12 years at 3% interest (Do not round intermediate calculations. Round your answer to 2 decimal places.) 10 polnts eBook Present value 683 85 6-2. Annual payment of S775 for 17 years at 3% interest (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value a-3. Which option would you preter? k Prev 9ot 15 Next > 23 201 O Type here to searchExplanation / Answer
Annual rate of interest is 3% and 12% Years PVVF of $ 1 @ 3% Total PVVF of $ 1 @ 12% Total 0 1.00000 1.00000 1 0.97087 0.89286 2 0.94260 0.79719 3 0.91514 0.71178 4 0.88849 0.63552 5 0.86261 0.56743 6 0.83748 0.50663 7 0.81309 0.45235 8 0.78941 0.40388 9 0.76642 0.36061 10 0.74409 0.32197 11 0.72242 0.28748 12 0.70138 9.95400 0.25668 6.19437 13 0.68095 0.22917 14 0.66112 0.20462 15 0.64186 0.18270 16 0.62317 0.16312 17 0.60502 13.16612 0.14564 7.11963 Answer = A-1 Deposite Amount Per Year (A) total PVF of $ 1 in 12 th Year @3% (B) Present Value Annual Payment $ 975.00 $ 9.954 $ 9,705.15 Answer = A-2 Deposite Amount Per Year (A) total PVF of $ 1 in 17 th Year @3% (B) Present Value Annual Payment $ 775.00 $ 13.166 $ 10,203.74 Answer = B-1 Deposite Amount Per Year (A) total PVF of $ 1 in 12 th Year @12% (B) Present Value Annual Payment $ 975.00 $ 6.194 $ 6,039.51 Answer = B-2 Deposite Amount Per Year (A) total PVF of $ 1 in 17 th Year @12% (B) Present Value Annual Payment $ 775.00 $ 7.120 $ 5,517.71 Answer = B-3 Option 1 = $ 975 a year for 12 year will prefer because it have the greater present value
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.