Question: Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2011, of a five-period annual
| Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2011, of a five-period annual annuity of $5,000 under each of the following situations (Use Table 2, Table 4, and Table 6) (Round "PV Factor" to 5 decimal places and final answers to the nearest dollar amount. Omit the "$" sign in your response): |
| (1) | The first payment is received on December 31, 2012, and interest is compounded annually. |
| Present value | $ |
| (2) | The first payment is received on December 31, 2011, and interest is compounded annually. |
| Present value | $ |
| (3) | The first payment is received on December 31, 2012, and interest is compounded quarterly. |
| Present Value | |
| First Payment | $ |
| Second Payment | |
| Third Payment | |
| Fourth Payment | |
| Fifth Payment | |
| | |
| Total | $ |
| | |
| | |
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