Present value of an ordinary

annuity.

Fill in the missing present values in the following table for an ordinary annuity:

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Part 1

Number of Payments or Years		Annual Interest Rate		Future Value		Annuity		Present Value
7		10%		0		$223.68		$enter your response here (Round to the nearest cent.)

Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 7 10% 0 223.68 19 13% 0 3,392.71 26 3.5% 0 650.39 300 0.7% 0 2,382.59

2) Annuity

due.

Reginald is about to lease an apartment for

18

months. The landlord wants him to make the lease payments at the start of the month. The monthly payments are

$1,400

per month. The landlord says he will allow Reg to prepay the rent for the entire lease with a discount. The one-time payment due at the beginning of the lease is

$23,962.

What is the implied monthly discount rate for the rent? If Reg is earning

1.1%

on his savingsmonthly, should he pay by month or make the one-time payment?

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Part 1

What is the implied monthly discount rate for the rent?

enter your response here%

(Round to two decimal places.)