Exercise 5-9 (Algo) Present value; annuities [LO5-8]

Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $4,400 under each of the following situations: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

1. The first payment is received at the end of the first year, and interest is compounded annually.

2. The first payment is received at the beginning of the first year, and interest is compounded annually.

3. The first payment is received at the end of the first year, and interest is compounded quarterly.

Table or calculator function: Payment: n = = PV - 12/31/2021: Table or calculator function: Payment: n = = PV - 12/31/2021: n = PV - 12/31/2021 $ Deposit Date 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 Deposit $ 4,400 4,400 4,400 4,400 4,400 $ 0