Question 20

(Present value of an annuity due) Determine the present value of an annuity due of $1,000 per year for 8 years discounted back to the present at an annual rate of 11 percent. What would be the present value of this annuity due if it were discounted at an annual rate of 16 percent? a. If the annual discount rate is 11 percent, the present value of the annuity due is $ b. If the annual discount rate is 16 percent, the present value of the annuity due is $ (Round to the nearest cent.) (Round to the nearest cent.)