What is the present value of an annuity with payments of $ 80, 000.00 $80,000.00 paid annually for 25 25 years at 6 % 6% compounded annually? Assume the interest rate does not change while the account is open. Round your answer to the nearest cent.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
Question
What is the present value of an annuity with payments of $ 80, 000.00 $80,000.00 paid annually for 25 25 years at
6 % 6% compounded annually? Assume the interest rate does not change while the account is open. Round your
answer to the nearest cent.
Transcribed Image Text:What is the present value of an annuity with payments of $ 80, 000.00 $80,000.00 paid annually for 25 25 years at 6 % 6% compounded annually? Assume the interest rate does not change while the account is open. Round your answer to the nearest cent.
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