Question: Ordinary Annuity Finding the Present Value. What is the present value of an annuity if the size of each payment is 20,000 payable at the

Ordinary Annuity

Finding the Present Value.

  1. What is the present value of an annuity if the size of each payment is 20,000 payable at the end of each quarter for eight years at an interest rate of 7% compounded quarterly?
  2. Bryony purchased a washing machine and made a down payment of 2,500. She agreed to pay 300 per month thereafter for one year. If the interest was at 7% compounded monthly, what was the cash price of the washing machine?

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