CENGAGE | MINDTAP

Ch 05-End-of-Chapter Problems - Time Value of Money

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5. Problem 5.15 (Present Value of an Annuity)

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Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.

a. $300 per year for 10 years at 6%.

$

b. $150 per year for 5 years at 3%.

$

c. $900 per year for 5 years at 0%.

$

d. Rework previous parts assuming they are annuities due.

Present value of $300 per year for 10 years at 6%: $

Present value of $150 per year for 5 years at 3%: $

Present value of $900 per year for 5 years at 0%: $