Present Value of 1 Future Value of 1

question 49

True/False

Present Value of 1 Future Value of 1 Present Value of an Annuity of 1 Future Value of an Annuity of 1 The present value of $5,000 per year for three years at 12% compounded annually is $12,009.
2.4018 is the PV factor on the Present Value of an Annuity table; n = 3; i = 12%
Present Value of an Annuity = Annuity * PV Factor
Present Value of an Annuity = $5,000 * 2.4018 = $12,009

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