pv of annuity tables
For some reason I cannot figure out the rest of the numbers… could someone help me out please?
Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2011, of a five-period annual annuity of $5,000 under each of the following situations (Use Table 2, Table 4, and Table 6) (Round “PV Factor” to 5 decimal places and final answers to the nearest dollar amount. Omit the “$” sign in your response):
(1)The first payment is received on December 31, 2012, and interest is compounded annually.
Present value$ 18023.9
(2)The first payment is received on December 31, 2011, and interest is compounded annually.
Present value$ 20186.75
(3)The first payment is received on December 31, 2012, and interest is compounded quarterly.
Present Value
First Payment$ 4464.3
Second Payment 3985.95
Third Payment ???
Fourth Payment ???
Fifth Payment ????
Total$ ????
I thought all five payments were supposed to be $5000?
in that case all you need to know is that the present value is:
17780.59
and the annual interest earnings will be:
2231.62
1884.17
1493.10
1052.95
557.56
———–
7219.41
Present Value of an Annuity Calculation in 9 Minutes – Annuity Formula
