What is the approximate present value of an ordinary annuity (beginning one year from now) of a
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What is the approximate present value of an ordinary annuity (beginning one year from now) of a stream of 12 annual payments of $87,000 if you use a discount rate of 6%?
a. $773,154.04
b. $747,278.92
c. $729,394.95
d. $718,974.58
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he present value of an annuity is the current value of future payments from an annuity, given a specified rate of return, or discount rate. The higher the discount rate, the lower the present value of the annuity
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