Exercise B-10 (Static) 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 $5,000 each. At the same time, C&H borrowed additional money and agreed to pay it back with a series of four annual payments of $7,500 each. The annual interest rate for both loans is 6%. (PV of $1, FV of $1, PVA of $1, and FVA of $1)

Note: Use factor(s) from the tables provided. Round answers to nearest whole dollar. Round "Table Factor" to 4 decimal places.

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2

Use the correct table to find the present value of these two separate annuities. Note: Round amounts to the nearest dollar.

AnnuityPeriodic Cash FlowXp (PV of an Ordinary Annuity)=Present ValueFirst Annuity$5,000selected answer correctX4.4859selected answer incorrect=not attemptedSecond Annuity$7,500selected answer correctX3.2379selected answer incorrect=