UN ANY What is the present value of a 10-year $1,000 annuity discounted back to the present at 5 percent CALCUL In an earlier example on saving for college, we calculated the value of a 5-year ordinary annuity of $500 invested in the bank at 6 percent to be $2,181:55. If w now assume this to be a 5-year annuity due, its future value increases from $2,181.5 to $2,987.66. 15