Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
-he present value of an annuity of $500 for 10 years at 10 percent interest compounded annually is

Question

Use the present value and future value tables included in Appendix 8 and on the textbook companion website. 
-he present value of an annuity of $500 for 10 years at 10 percent interest compounded annually is

Quizplus · Accepted Answer

Using the present value of an annuity table in Appendix 8, the present value factor for an annuity of $1 per period for 10 years at 10% interest compounded annually is 6.145. Multiplying this factor by $500 gives us a present value of $3,072.50. Therefore, the present value of an annuity of $500 for 10 years at 10% interest compounded annually is less than $5,000.

Use the Present Value and Future Value Tables Included in Appendix