Using the tables above,what would be the present value of $15,000 to be received at the end of each of the next 2 years,assuming an earnings rate of 6%?

Question

Quizplus · Accepted Answer

The present value of an annuity can be calculated using the formula PV = PMT × [(1 - (1 + r)^-n) / r], where PMT is the payment amount, r is the interest rate, and n is the number of periods. Plugging in the values: PV = $15,000 × [(1 - (1 + 0.06)^-2) / 0.06] = $27,495.

Using the Tables Above,what Would Be the Present Value of $15,000