The present value of $5,000 per year for three years at 12% compounded annually is
$12,009.

Name: The present value of $5,000 per year for three years at 12% compounded annually is $12,009.
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Question

Quizplus · Accepted Answer

Present Value of an Annuity = Annuity * Interest Factor
Present Value of an Annuity = $5,000 * 2.4018 = $12,009
2.4018 is the interest factor on the Present Value of an Annuity table; n = 3; i = 12%

The Present Value of $5,000 Per Year for Three Years