H1. Drill Problem 13-5 (Algo) [LU 13-2 (1))Complete the following for the present value of an ordinary annuity. (Use Table 13.2.) (Do not round intermediate calculations. Roundyour answer to the nearest cent.)Amount ofannuityexpected740PaymentAnnuallyAnswer is complete but not entirely correct.Present value (amountneeded now to invest toreceive annuity)Time5 yearsInterest rate :7%$542.00

In other words, the present value is the discounted value of a future cash flow or sum of money,…

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Business

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Complete the following for the present value of an ordinary annuity. (Use Table 1 your answer to the nearest cent.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

H1.

Drill Problem 13-5 (Algo) [LU 13-2 (1))
Complete the following for the present value of an ordinary annuity. (Use Table 13.2.) (Do not round intermediate calculations. Round
your answer to the nearest cent.)
Amount of
annuity
expected
740
Payment
Annually
Answer is complete but not entirely correct.
Present value (amount
needed now to invest to
receive annuity)
Time
5 years
Interest rate :
7
%
$
542.00

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