# Use the present value tables in Appendix A and Appendix B to compute the NPV of each

## Question:

a. $89,000 received at the end of six years. The discount rate is 4 percent.

b. $3,400 received annually at the end of each of the next 15 years. The discount rate is 9 percent.

c. A 10-year annuity of $5,000 per annum. The first $5,000 payment is due immediately. The discount rate is 6 percent.

d. $20,000 received annually at the end of years 1 through 5 followed by $13,000 received annually at the end of years 6 through

10. The discount rate is 15 percent.

Annuity

An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Discount Rate

Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...

Fantastic news! We've Found the answer you've been seeking!

## Step by Step Answer:

**Related Book For**

## Principles Of Taxation For Business And Investment Planning 2016 Edition

**ISBN:** 9781259549250

19th Edition

**Authors:** Sally Jones, Shelley Rhoades Catanach