Present value of an annuity Determine the present value of $190,000 to be received at the end of each of 4 years, using an interest rate of 5.5%, compounded annua a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. First year X Second Year Third Year Fourth Year 4 Total present value b. By using the present value of an annuity of $1 table in Exhibit 7. Round to the nearest whole dollar.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Present value of an annuity
Determine the present value of $190,000 to be received at the end of each of 4 years, using an interest rate of 5.5%, compounded annuall
a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar.
First year
Second Year
Third Year
Fourth Year
X
Total present value
b. By using the present value of an annuity of $1 table in Exhibit 7. Round to the nearest whole dollar.
SA
Transcribed Image Text:Present value of an annuity Determine the present value of $190,000 to be received at the end of each of 4 years, using an interest rate of 5.5%, compounded annuall a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. First year Second Year Third Year Fourth Year X Total present value b. By using the present value of an annuity of $1 table in Exhibit 7. Round to the nearest whole dollar. SA
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