present value of annuity

o?invo ker-&takeAssignments eBook Calculator Print Item Present Value of an Annuity Determine the present value of $330,000 to be received at the end of each of four years using an interest rate of 6%, contour ded annually, as follows: a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar First year Second Year Third Year Fourth Year Total present value value of an annuity of $1 table in Exhibit 7. Round to the nearest whole dolar. c. why is the present value of the four $330,000 cash receiots less than thre $1.320,000 o be recotueo in the future? The present value is less due to the compounding of interest ovr the 4 years. Review the time valus of money concept. Recall that the tima v same amount of cash to be recelved in the futura. ne cognites bhat cach rocebied today is worth more thar the Previous Next Chack ty Work