Asked by Shelby Buckler on Jul 01, 2024
Using the table, calculate the present value of an annuity of $50,0000 to be received at the end of each of five years at 6 percent interest?
Present value of an annuity of $1 at compound interest: 
Annuity
is a financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.
Compound Interest
Interest calculated on the initial principal as well as on the accumulated interest of previous periods of a deposit or loan.
Present Value
The value at present of future cash earnings or accumulations of money, determined by applying a pre-specified rate of financial return.
- Compute the current value of both a single amount and a series of payments by employing present value tables.
Learning Objectives
- Compute the current value of both a single amount and a series of payments by employing present value tables.