Find the present value of an ordinary annuity which has payments of $2200 per year for 12 years at 9% compounded annually. The present value is.

Macy Villanueva

Macy Villanueva

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2022-09-03

Find the present value of an ordinary annuity which has payments of $2200 per year for 12 years at 9% compounded annually. The present value is.

Answer & Explanation

daufleguos

daufleguos

Beginner2022-09-04Added 6 answers

P V = C i [ 1 1 ( 1 + i ) n ]
That is the equation for present value where n represents theyears, C represents the payments and i is the interest. over theperiod which is years
So P V = 2200 .09 ( 1 1 ( 1 + .09 ) 12 ) = 15753.5956
rounded will be $15753.60

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