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Calculate The Present Value Of This Annuity?

13 Nov

Calculate the present value of this annuity?
Regular payment: $5000 per year
Rate of Compound Interest per year: 7.2%
Compounding period: annually
Time: 5 years

 
2 Comments

Posted in CD Type Annuities

 

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  1. Paris

    November 13, 2009 at 10:30 am

    $1800.

     

  2. Martin F

    November 13, 2009 at 11:19 am

    PV=PM((1+r)^n-1)/r
    PV=5000((1+.072)^5-1)/.072
    PV=$28,868.70