a) What is the present value of a 3-year annuity of $100 if the discount rate is 6 percent?
b) What is the present value of the annuity from part (a) of this question if you have to wait 2 years instead of 1 year for the payment stream to start?© BrainMass Inc. brainmass.com March 4, 2021, 5:55 pm ad1c9bdddf
The present value of a $1 annuity is equal to:
[1/r] - [1/(r * (1 + r)^t)] where r is the ...
This solution looks at annuity values.