Find the Present Value of an Ordinary Annuity of $50

question 110

Short Answer

Find the present value of an ordinary annuity of $50 payments each made monthly over 10 years and earning interest at 4% per year compounded monthly. Round your answer to the nearest cent.
$__________

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Definitions:

Maturity

The date on which a debt must be paid back in full or the final payment is due.

Price Sensitivity

The degree to which the price of a product or service affects consumers' purchasing decisions.

Interest Rates

The cost of borrowing money or the return earned from lending money, expressed as a percentage of the principal.

Maturity

The date on which the final payment of a loan, bond, or other financial instrument is due to be paid, marking the end of the instrument's term.