Question

Both questions 7 and 8

Answer 1

9514 1404 393

Answer:

  7.  $10,459.28

  8.  $30,060.93

Step-by-step explanation:

Your table 12-2 will tell you the present-value multiplier of the annual payment for a 10-year annuity due will be ...

  7%: 7.515232

  11%: 6.537048

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7. The 11% table value will be used with a payment of $1600 to find the present value:

  6.537048 × $1600 = $10,459.28 . . . present value of the annuity due

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8. The 7% table value will be used with a payment of $4000 to find the present value:

  7.515232 × $4000 = $30,060.93 . . . present value of the annuity due