How much must be invested today in order to generate a 5-year annuity of $1,000 per year,with the first payment 1 year from today,at an interest rate of 12%?
A) $3,604.78
B) $3,746.25
C) $4,037.35
D) $4,604.78

Name: How much must be invested today in order to generate a 5-year annuity of $1,000 per year,with the first payment 1 year from today,at an interest rate of 12%? A) $3,604.78 B) $3,746.25 C) $4,037.35 D) $4,604.78
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Question

Quizplus · Accepted Answer

PV = $1,000{(1 / 0.12) − [1 / 0.12(1.12⁵)]}PV = $3,604.78

How Much Must Be Invested Today in Order to Generate