Present Value of Annuities

1. You got into a car accident & settled out of court for equal payments of $3500 at the end of each year for the next 4 years. If the annual interest rate stays constant at 5%, what is the value of these payments in todays dollars? Round answer to nearest whole dollar.

• 13032
• 12411
• 15514
• 10549

2. You found out that now you are going to receive payments of $7500 for the next 17 years. You will receive these payments at the beginning of each year. The annual interest rate will remain constant at 12%. What is the present value of these payments? Round answer to nearest whole dollar.

• 47844
• 53397
• 80737
• 59805