Question: An annuity is set up that will pay $1 500 per year for ten years. What is the present value (PV) of this annuity given

An annuity is set up that will pay $1 500 per year for ten years. What is the present value (PV) of this annuity given that the discount rate is 6%? (round to the nearest $1) Select one: O a. $14 721 O b. $11 040 O c. $19 771 O d. $8 441 Clear my choice

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The $41 billion dollar firm Uber Technology, Inc., is unsettling the traditional taxi business. In over 40 countries and 240 markets around the world, Uber and similar companies are challenging the...

Given a continuous income stream at the constant rate of $1, 500 per year, what will be the present value if the income stream lasts for 6 years and the continuous discount rate is 0.08 per year?...

1. Present Value and Multiple Cash Flows Investment X offers to pay you $2,800.00 per year for ten years, whereas Investment offers to pay you $5,200.00 per year for five years. Which of these cash...

please help solve 13. An investor is looking to buy a fixed annuity that will pay him/her $20,000 a year for 40 years starting on 101xx. The interest rate (discount rate) is 4%. Calculate the present...

Joseph (age 52) and Diana (age 54) Cohen are married and live in Pleasantville, New Jersey. Joseph is the Vice-President of Sales at a small start-up company. Diana is a former advertising executive...

Withholding $3,500 Withholding $1,500 Jensen Photography $32,000 All applicable and appropriate payroll taxes were withheld by Grants' respective employers. Tax Project: Based on the information...

Cuppa Inc. operates a chain of lunch shops. The company is considering two possible expansion plans. Plan Awould open eight smaller shops at a cost of $8,540,000, Expected annual net cash inows are...

JOSEPH AND DIANA COHEN INDIVIDUAL FEDERAL INCOME TAX RETURN Joseph (age 52) and Diana (age 54) Cohen are married and live in Pleasantville, New Jersey. Joseph is the Vice-President of Sales at a...

Styles Your final submission, to be submitted via email, should include: 1. PDF of 2020 tax return + client memo (labelled, for example: Groupl_IndividualTR) 2. Excel of 2020 tax return workpaper...

Part 1: Tax return preparation (35 points) You have been engaged to prepare the 2018 federal income tax return for Bob and Melissa Grant. Your tax form submission should include: Form 1040, Schedules...

JOSEPH AND DIANA COHEN INDIVIDUAL FEDERAL INCOME TAX RETURN Joseph (age 52) and Diana (age 54) Cohen are married and live in Pleasantville, New Jersey. Joseph is the Vice-President of Sales at a...

In June 2012, a Gallup Poll asked U.S. adults whether immigration was a good thing or a bad thing for the country. Out of 1004 respondents, 663 said it was a good thing. a. What percentage of those...

As a product manager of Coleman Tents and Shelter Store in Coquitlam Centre, you are writing a letter (NOT an email) to John Smith, a great salesperson in Coquitlam Centre (2929 Barnet Hwy,...

Using the Power Rule, what is the derivative of Option A Option B Option C Option D Option E Option F Option G

Bug-Off Exterminators provides pest control services and sells extermination products manufact the company's unadjusted trial balance as of December 31, 2021. December 31, 2021 Cash Unadjusted Trial...