3 years ago

What is 0.021 in fraction form?

1 answer:

7 0

Convert the decimal to a fraction by placing the decimal number over a power of ten. Since there are three numbers to the right of the decimal point, place the decimal number over 10^3 (1000)
= 21/1000

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4. If your company purchases an annuity that will pay $50,000/year for 10 years at a 11% discount rate, what is the value of the

julsineya [31]

Answer:

The value of the annuity is $326,852.3766.

Step-by-step explanation:

Here is the required formula to find the present value of annuity:

We can find the present value of annuity:

$PV = P + P (\frac{1-(1+r)^{-(n-1)} }{r})$

Here:

P = $50,000

n = represents the number of number of periods

r = 0.11

$PV = 50,000 + 50,5000 (\frac{1-(1+0.11)^{-(10-1)} }{0.11})$

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The value of the annuity is $326,852.3766 i.e. PV = $326,852.3766.

Keywords: discount rate, present value of annuity

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