4. An investment promises 5 equal annual payments of $896, with the first payment occurring in 5 years. If the interest rate is 6%, what is the PV of the payments today (i.e., at t=0)?

5. What is the PV today of a 9 payment annuity if the first payment of $1,034 occurs one year from today and the payments grow at 5% annually? The interest rate is 10%.

Answer rating: 100% (QA)

4 To calculate the present value PV of the five equal annual payments of 896 with the first payment ... View the full answer