Engineering Board Exam Reviewer · Annuity Due and Deferred Annuity · hard
Find the present value of an annuity due of P2,500 per year for 6 years at 8% annual interest.
- P12,481.76
- P11,557.15
- P12,000.00
- P12,800.00
Answer
A. P12,481.76
Solution
PVdue=A· 1-(1+i)-ni·(1+i)=2500· 1-(1.08)-60.08·1.08 P12,481.76.
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