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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Ex 12-18 Present value of an annuity
Determine the present value of $200,000 to be received at the end of each of four years, using an interest rate of 7%, compounded annually, as follows:
a.    By successive computations, using the present value table in Exhibit 8.
b.    By using the present value table in Exhibit 10.
c.    Why is the present value of the four $200,000 cash receipts less than the $800,000 to be received in the future?
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