aaroncx6744 aaroncx6744
  • 23-01-2020
  • Business
contestada

what's the present value of $850 annuity payments over five years if the interest rates are 9%?

Respuesta :

ijaz4308
ijaz4308 ijaz4308
  • 24-01-2020

Answer:

$3,306.20

Explanation:

The present value of any payments can be calculated using the following formula:

Present value=R((1-(1+i)^-n)/i)

R= annuity payment =$850 in this case

i=interest rate=9%

n=number of payments=5

Present value=$850((1-(1+9%)^-5)/9%)

                      =$3,306.20

                       

Answer Link

Otras preguntas

what percent of 45 is 72
What were the Federalist Papers?
(1) Earths crust is made up of relatively rigid plates that ride atop Earth's hot, semiliquid mantle. (2) The plates are called tectonic because they're in cons
A patch of forest has been cleared to build a house. Which is likely to happen to the plant and animal communities of that forest patch?
maren walks 3 / 5 mile in 24 minutes at a steady pace. how long does it take her to walk 2 miles
what type of colony was self governing?
English document guaranteeing rights
The level of oxygen in the air is measured in a garden and on a city road. Which location has a higher level of oxygen and why?
what positive integer must be included in the set(1, 2 , 4 , 8) so that the new set of five integers have a median that is equal to its mean
Muscle cells, which need a lot of ATP, would be expected to have a lot of ________________, the organelles involved in cellular respiration.