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a-1. Calculate the present value of an annual payment of \( \$ 510.00 \) you would received for 10 years if the interest rate is \( 6.51 \% \). (Do not round intermediate calculations. Round your answ

User Mrcoulson
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We can use the present value formula for an annuity to calculate this:

Present value = Payment x [(1 - (1 + r)^(-n)) / r]

Where r is the interest rate per period, n is the number of periods, and the payment is the amount received each period.

In this case, the payment is $510 per year, the interest rate per period is 6.51% (or 0.0651), and the number of periods is 10.

Present value = 510 x [(1 - (1 + 0.0651)^(-10)) / 0.0651]
Present value = 510 x [(1 - 0.3763) / 0.0651]
Present value = 510 x (11.0692)
Present value = $5,639.93

Therefore, the present value of an annual payment of $510 for 10 years at an interest rate of 6.51% is $5,639.93.
User Jnmoal
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