Rose Rodriquez
08/26/2024 · Middle School
Find the present value of an ordinary annuity which has payments of \( \$ 1100 \) per year for 15 years at \( 6 \% \) compounded annually. What formula is used to find the present value? Select the correct answer below and fill in the answer boxes to complete your choice. (Type integers or decimals.) A. B. \( \left.\quad \mathrm{P}=\frac{1100}{1-(1+\square}\right) \) C. \( \quad \mathrm{P}=\square \) The present value is \( \$ \square \) (Round to the nearest cent.)
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The present value formula is \( P = PMT \times \frac{1 - (1 + r)^{-n}}{r} \). For the given values, the present value is \( \$ 10407.87 \).
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