# The present value of \$500 to be received at the end of each year for seven years at adiscount rate of 8 percent is ?

Question
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The present value of \$500 to be received at the end of each year for seven years at a
discount rate of 8 percent is ?

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Step 1

Annuities are a regular stream of payments made for a defined period. Resent value of these annuities can b determined using a formula.

Step 2

Here,

Annuity payment ( P ) = \$500

Number of years ( n ) = 7

Discount rate (... help_outlineImage TranscriptioncloseUsing the Present Value annuity formula Px 1-. (1+r)" PVA = 1 \$500x|1- (1+0.08)' 0.08 \$500x (1-0.583490395262134) 0.08 \$500x0.416509604737866 0.08 = \$2603.18502961166 || fullscreen

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