Find the present value of an annuity if $2,200.00 is paid to you at the end of every 2 months for 3 years, if interest is earned at a rate of 5%, compounded every 2 months. The present value is $. (Round to 2 decimal places.) answer is not $36,937.08
Find the present value of an annuity if $2,200.00 is paid to you at the end of every 2 months for 3 years, if interest is earned at a rate of 5%, compounded every 2 months. The present value is $. (Round to 2 decimal places.) answer is not $36,937.08
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
Related questions
Question
Find the present value of an annuity if $2,200.00 is paid to you at the end of every 2 months for 3 years, if interest is earned at a rate of 5%, compounded every 2 months.
The present value is $. (Round to 2 decimal places.)
answer is not $36,937.08
Expert Solution
Step 1
Present value is the current worth of future payments to be received from the investment.
Formulas:
Present value = Payment*(1-(1+rate)^-periods) / Rate
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT