Present Value of Ordinary Annuities

Calculate the present value of an ordinary annuity with annual payments of $5,000 for 10 years at an interest rate of 8%.

• The present value of the annuity is $40,000.

• The present value of the annuity is $30,000.

• The present value of the annuity is $25,000.25

• The present value of the annuity is $33,550.41

Tags

CCSS.HSA.SSE.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

Determine the present value of an ordinary annuity with monthly payments of $1,200 for 8 years at an interest rate of 4%.

• The present value of the annuity is $100,000

• The present value of the annuity is $120,010.78

• The present value of the annuity is $90,000

• The present value of the annuity is $98,447.20

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.REI.B.3

CCSS.HSA.SSE.A.1

CCSS.HSF.BF.A.1

CCSS.HSN.Q.A.1

Calculate the present value of an ordinary annuity with semi-annual payments of $3,000 for 12 years at an interest rate of 7%.

• The present value of the annuity is $30,150.75

• The present value of the annuity is $20,000.

• The present value of the annuity is $48,175.10

• The present value of the annuity is $15,550.98

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSN.Q.A.1

Calculate the present value of an ordinary annuity with monthly payments of $1,800 for 7 years at an interest rate of 3%.

• The present value of the annuity is $100,000.

• The present value of the annuity is $216,594.27.

• The present value of the annuity is $50,000.

• The present value of the annuity is $136,226.38.

Tags

CCSS.HSF.IF.A.2

CCSS.HSN.Q.A.1

CCSS.HSN.Q.A.2

Find the present value of an ordinary annuity with semi-annual payments of $3,500 for 9 years at an interest rate of 6%.

• The present value of the annuity is $25,000.

• The present value of the annuity is $48,137.30

• The present value of the annuity is $20,000.

• The present value of the annuity is $32,347,62.

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

Calculate the present value of an ordinary annuity with quarterly payments of $2,300 for 8 years at an interest rate of 5%.

• The present value of the annuity is $60,354.93

• The present value of the annuity is $45,470.86

• The present value of the annuity is $100,000.

• The present value of the annuity is $80,000.

Tags

CCSS.HSF.BF.A.1

CCSS.HSF.IF.A.1