What is the present value of an annuity consisting of payments of $800 every month for 8 years, with the first cash flow occurring in one month, if the interest rate is 7% p.a., compounded monthly? Select one: a. $4889.84 b. $4777.04 c. $58678.05 d. $58649.67

What is the present value of an annuity consisting of payments of $800 every month for 8 years, with the first cash flow occurring in one month, if the interest rate is 7% p.a., compounded monthly? Select one: a. $4889.84 b. $4777.04 c. $58678.05 d. $58649.67

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 7P

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Question

What is the present value of an annuity consisting of payments of $800 every month for 8 years, with the first cash flow occurring in one month, if the interest rate is 7% p.a., compounded monthly?

Select one:

$4889.84

$4777.04

$58678.05

$58649.67

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