BPP 103

okay 0-4 , AF of 4th year and plus 1 for year 0 hw do we do delayed?

You must watch our lectures and work through our notes. An example would be An annuity of $3000 per year for eight years starts at the end of the third year and finishes at the end of the tenth year. Required What is the present value of the annuity if the discount rate is 6%? (Give your answer to the nearest $.) So take the 10 year annuity and remove the delays That means the same amount for 8 years starting in year 3 So if you think, take the whole 10 years at 6% is 7.360 – then take off the first two years of 1.833 = 5,527 * 3000 = 16,581