What is the present value of the right to receive four equal payments (ordinary

annuity) of $500 per period, discounted at a rate of 10 percent per period? (Round

your answer to the nearest cent.)

Question

Linnea

28 November, 20:38

+3

Answers (1)

Know the Answer?

Malaki Gardner · Answer 1

Calculate your answer as 500 * (1-1/1.1^4) /.1 = $1,584.94

What is the present value of the right to receive four equal payments (ordinaryannuity) of $500 per period, discounted at a rate of 10 percent per period? (Roundyour answer to the nearest cent.)