Suppose that an annuity will provide for 20 annual payments of 1400 dollars, with the first payment coming 11 years from now. If the nominal rate of interest is 8.6 percent convertible monthly, what is the present value of the annuity? Answer= dollars.

Suppose that an annuity will provide for 20 annual payments of 1400 dollars, with the first payment coming 11 years from now. If the nominal rate of interest is 8.6 percent convertible monthly, what is the present value of the annuity? Answer= dollars.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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Question

Suppose that an annuity will provide for 20 annual payments of 1400 dollars, with the first payment coming 11 years from now. If the nominal rate of interest is 8.6
percent convertible monthly, what is the present value of the annuity?
-0
Answer=
dollars.

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