11. Present value of annuities
You have a partnership stake in a business that pays you equal payments of $3,000 at the end of each year for the next ten years. If the annual
interest rate stays constant at 8%, what is the value of these payments in today's dollars? Round your answer to the nearest whole dollar.
$21,740
$17,111
$25,163
$20,130
You found out that now you are going to receive payments of $5,500 for the next 11 years. You will receive these payments at the beginning of each
year. The annual interest rate will remain constant at 13%. What is the present value of these payments? Round your answer to the nearest whole
dollar.
$47,714
$28,275
$35,344
$31,278