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Exercise B-10 Present values of annuities LO P3 C&H Ski Club recently borrowed money and agreed to pay it back with a series of
Exercise B-10 Present values of annuities LO P3 C&H Ski Club recently borrowed money and agreed to pay it back with a series of six annual payments of $10,000 each. C&H subsequently borrows more money and agrees to pay it back with a series of four annual payments of $9,000 each. The annual interest rate for both loans is 6%. Find the present value of these two separate annuities. (PV of $1. EV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to nearest whole dollar. Round "Table Factor" to 4 decimal places.) First Annuity Number of Interest Single Future Amount Table Factor Periods Rate Payment Borrowed First payment 1 6% $ 10,000 x Second payment 2 6% 10,000 x Third payment 3 6% 10,000 x Fourth payment 4 6% 10,000 x Fifth payment 5 6% 10,000 x Sixth payment 6 6% 10,000 x Second Annuity Number of Interest Single Future Table Factor Periods Rate Payment Amount Borrowed First payment 1 6% $ 9,000 x Second payment 2 6% 9,000 x Third payment 3 6% 9,000 x Fourth payment 4 6% 9,000 x
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