Determine the present value of the following annuities if the annuity earns 8 percent. A. Five annual

Question:

Determine the present value of the following annuities if the earns 8 percent.
A. Five annual payments of $ 10,000 beginning one year from today.
B. 20 quarterly payments of $ 2,500 beginning three months from today.
C. 10 semiannual payments of $ 5,000 beginning six months from today.
D. Explain why the results differ.
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...