Lois is purchasing an annuity that will pay $5,000 annually for 20 years, with the first annuity payment made on the date of purchase. What is the value of the annuity on the purchase date given a discount rate of 7 percent?
This is an annuity due, since the first payment is made on the date of purchase.
Using our present value of an annuity due calculator, we get 56,677.98.
This is an annuity due, since the first payment is made on the date of purchase.
Using our present value of an annuity due calculator, we get 56,677.98.