# If the present value of an ordinary, 6-year annuity is \$8,800 and interest rates are 9.5 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.)PV = \$_______.__

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If the present value of an ordinary, 6-year annuity is \$8,800 and interest rates are 9.5 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.)

PV = \$_______.__

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Step 1

An annuity due is a type of annuity in which payments are made at regular time interval and at the beginning of every period.

Step 2

The present value of the same annuity due is calculated as:

Step 3 help_outlineImage Transcriptionclose(Present value of the 6 year annuity)x(1+Interest rate) Substituting the values, we get; Present value of annuity due-8800x(1+9.5%) =9636 fullscreen

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