Questions on Word Problems: Money, Business and Interest answered by real tutors!

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Question 150879: Find the present value of a $2,500 annual annunity at 7% for 10 years.: Find the present value of a $2,500 annual annunity at 7% for 10 years.
Answer by vleith(954) About Me  (Show Source):
You can put this solution on YOUR website!
PVoa = PMT [(1 - (1 / (1 + i)n)) / i]
P = 2500((1 - (1 / (1.07)^10)) / 0.07)
P = 2500((1 - (1 / 1.967)) / 0.07)
P = 2500((1 - (0.5083)) / 0.07)
P = 2500((0.4916) / 0.07)
P = 17557.14