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You are thinking of purchasing an annuity with annual payments of $400. However, unlike previous annuities...

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Finance

You are thinking of purchasing an annuity with annual paymentsof $400. However, unlike previous annuities you’ve seen, this onepays the initial payment of $400 today (not important, but thetechnical term for this is an annuity due). The annuity pays atotal of 12 payments. If the discount rate is 6%, what is thepresent value of the product?

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3.9 Ratings (687 Votes)
The respective Payments their discounting factors and theresultant    See Answer
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