Use Table 12-2 from Your Text to Calculate the Present

question 106

Short Answer

Use Table 12-2 from your text to calculate the present value of the annuity due, rounding to the nearest cent: $$\begin{array} { l l l l l l } \text { Annuity } & \text { Payment } & \text { Time } & \text { Nominal } & \text { Interest } & \text { Present Value } \\ \underline { \text { Payments }} & \underline { \text { Frequency }} & \underline { \text { Period }} & \underline { \text { Rate } } & \underline { \text { Compounded} } & \underline { \text { of the Annuity }} \\ \$ 550 & \text { everymonth } & 2 \frac { 3 } { 4 } \text { yrs } & 18 \% & \text { monthly } &\end{array}$$

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Definitions:

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