Periods	Present Value of an Annuity of $1 in Arrears
10%	11%	12%	13%	14%
1	0.909	0.901	0.893	0.885	0.877
2	1.736	1.713	1.690	1.668	1.647
3	2.487	2.444	2.402	2.361	2.322
4	3.170	3.102	3.037	2.974	2.914
5	3.791	3.696	3.605	3.517	3.433
6	4.355	4.231	4.111	3.998	3.889
7	4.868	4.712	4.564	4.423	4.288
8	5.335	5.146	4.968	4.799	4.639

Knowledge Check 01

You are expecting a series of annual cash flows of $25,000 for six years. What is the present value of this annuity if the discount rate is 12%?

multiple choice

• $150,000
• $102,775
• $3,000
• $105,775