Amount of annuity expected $900 Payment Annually 4 years Time Interest rate 6% Present value (amount needed now to invest to receive annuity) $3,118.59 Check the correctness of annuity payment by completing the following table. Note: Round the answers the nearest cent. Year 1 Year 2 Year 3 Year 4 Opening balance $ 3,118.59 Interest Annuity Closing balance

Amount of annuity expected $900 Payment Annually 4 years Time Interest rate 6% Present value (amount needed now to invest to receive annuity) $3,118.59 Check the correctness of annuity payment by completing the following table. Note: Round the answers the nearest cent. Year 1 Year 2 Year 3 Year 4 Opening balance $ 3,118.59 Interest Annuity Closing balance

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 3CE

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