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6. Use the information in the table to calculate the present value of the annuity. Annual Payment ($) Discount Rate (96) Number of Years 15,000

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6. Use the information in the table to calculate the present value of the annuity. Annual Payment ($) Discount Rate (96) Number of Years 15,000 12 15 PV Annuity factor (12%, 15 years) = 6.8109 7. You have loaned your brother a sum of money. If he will pay you back $1,000 in three years, how much did you loan him today if the discount rate is 7%? PV factor (7%, 3 years) = 0.8163

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