A 10-year ordinary annuity that provides a return of 7% has a present value of $15,000.What are the annual annuity payments?
A) $2,135.66
B) $2,038.02
C) $2,235.44
D) $1,500.00
E) $2,232.84

Question

Quizplus · Accepted Answer

PV = PMT × 11ea7fdb_fc1a_788b_a768_754706880f7b_TB2902_11 PMT = PV / 11ea7fdb_fc1a_788c_a768_4ff707e8f933_TB2902_11 PMT = 15,000 / 11ea7fdb_fc1a_788d_a768_ffcca0142ec6_TB2902_11 = $2,135.66
Using a financial calculator:
N = 10, I/Y = 7, PV = -15,000, FV = 0, cpt PMT = $2,135.66

A 10-Year Ordinary Annuity That Provides a Return of 7