Find the present value of the ordinary annuity.
-Payments of $\$ 1000$ made annually for 10 years at $6.5 \%$ compounded annually
A) $\$ 7652.20$
B) $\$ 6477.50$
C) $\$ 7937.70$
D) $\$ 7188.83$

Question

Quizplus · Accepted Answer

The present value of an ordinary annuity can be calculated using the formula $ PV = P \times \frac{1 - (1 + r)^{-n}}{r} $, where $ P = 1000 $, $ r = 0.065 $, and $ n = 10 $. Plugging in these values gives the present value as approximately $\$ 7188.83$.

Find the Present Value of the Ordinary Annuity $1000\$ 1000$1000 Made Annually for 10 Years At

Find the Present Value of the Ordinary Annuity $\$ 1000$ Made Annually for 10 Years At