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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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 $5,000 under each of the following situations (Use Table 2,Table 4, andTable 6) (Round "PV Factor" to 5 decimal places and final answers to the nearest dollar amount. Omit the "$" sign in your response):
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| (1) | The first payment is received on December 31, 2012, and interest is compounded annually. |
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| Present value | $ |
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| (2) | The first payment is received on December 31, 2011, and interest is compounded annually. |
Â
| Present value | $ |
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| (3) | The first payment is received on December 31, 2012, and interest is compounded quarterly. |
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| Â | Present Value |
| First Payment | $ |
| Second Payment | Â |
| Third Payment | Â |
| Fourth Payment | Â |
| Fifth Payment | Â |
| Â | |
| Total | $ |
| Â | |
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