Question
7. Compute the present value of an annuity of $ 654 per year for 24 years, given a discount rate of 7 percent per annum.
7.
Compute the present value of an annuity of $ 654 per year for 24 years, given a discount rate of 7 percent per annum. Assume that the first cash flow will occur one year from today (that is, at t = 1). (Round your answer to 2 decimal places; record your answer without commas and without a dollar sign).
8. You just won a contest. The prize is a lump sum payment of $ 98,244 , however, you will not receive this payment for 28 years. Compute the present value of your prize assuming a discount rate of 14 percent per annum. (Round your answer to 2 decimal places; record your answer without commas and without a dollar sign)
9. Compute the present value of an annuity of $ 567 per year for 21 years, given a discount rate of 6 percent per annum. Assume that the first cash flow will occur one year from today (that is, at t = 1). (Round your answer to 2 decimal places; record your answer without commas and without a dollar sign)
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