What is the present value of a four-year annuity of $100 per year that makes its first payment 2 years from today if the discount rate is 9%?
A) $297.22
B) $323.97
C) $356.85
D) $272.68

Name: What is the present value of a four-year annuity of $100 per year that makes its first payment 2 years from today if the discount rate is 9%? A) $297.22 B) $323.97 C) $356.85 D) $272.68
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Question

Quizplus · Accepted Answer

PV = {$100[(1 / 0.09) − 1 / 0.09(1.09)⁴]} / 1.09PV = $297.22

What Is the Present Value of a Four-Year Annuity of $100