# Question: Determine the present value of an annuity due of 1 000

Determine the present value of an annuity due of $1,000 per year for 10 years discounted back to the present at an annual rate of 10 percent. What would be the present value of this annuity due if it were discounted at an annual rate of 15 percent?

**View Solution:**## Answer to relevant Questions

Determine the present value of an ordinary annuity of $1,000 per year for 10 years, assuming it earns 10 percent. Assume that the first cash flow from the annuity comes at the end of Year 8 and the final payment at the end ...Prof. Finance is thinking about trading cars. She estimates she will still have to borrow $25,000 to pay for her new car. How large will Prof. Finance’s monthly car loan payment be if she can get a five-year (60 equal ...What is the present value of a perpetuity stream of cash flows that pays $1,000 at the end of Year 1, and the annual cash flows grow at a rate of 4 percent per year indefinitely, if the appropriate discount rate is 8 ...Milhouse, 22, is about to begin his career as a rocket scientist for a NASA contractor. Being a rocket scientist, Milhouse knows that he should begin saving for retirement immediately. Part of his inspiration came from ...On December 24, 2007, the common stock of Google Inc. (GOOG) was trading for $700.73. One year later the shares sold for only $298.02. Google has never paid a common stock dividend. What rate of return would you have ...Post your question