What is the present value of an ordinary annuity with annual payments of $660 at 9% annual interest for 25 years? Click the icon to view the table. The present value of an ordinary annuity is S (Round to the nearest cent as needed.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 7P
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What is the present value of an ordinary annuity with annual payments of $660 at 9% annual interest for 25 years?
Click the icon to view the table.
The present value of an ordinary annuity is S
(Round to the nearest cent as needed.)
Transcribed Image Text:What is the present value of an ordinary annuity with annual payments of $660 at 9% annual interest for 25 years? Click the icon to view the table. The present value of an ordinary annuity is S (Round to the nearest cent as needed.)
Present Value of a $1.00 Ordinary Annuity
Rate per period
Periods 2%
3%
4%
5%
6%
7%
8%
9%
10%
1
0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909
2
1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736
3
2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487
4
3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170
4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791
6.
5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355
7
6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868
8.
7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335
8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759
10
8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145
11
9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495
Transcribed Image Text:Present Value of a $1.00 Ordinary Annuity Rate per period Periods 2% 3% 4% 5% 6% 7% 8% 9% 10% 1 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 2 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 3 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 4 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 6. 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 7 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 8. 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 10 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 11 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495
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