What Is the Present Value of an Annuity of $100

question 98

Multiple Choice

What is the present value of an annuity of $100 received at the end of each year for seven years? The first payment will be received one year from today (round to nearest $10) . The discount rate is 13%. To solve this problem with a financial calculator, the correct choice is

• A) N=7, i=13, PMT= 100, FV=0, solve for PV.
• B) N=7, i=13, PV= 100, FV=0, solve for FV.
• C) N=7, i=13, PMT= 100, FV=100, solve for PV.
• D) N=7, i=.13, PMT= 100, FV=0, solve for PV.

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