What is the present value of a 2000 per year ordinary annuit

What is the present value of a $2,000 per year ordinary annuity at a discount rate of 5% for 10 years?

Solution

Solution:

Here C=2000 r=5%=0.05 n=10 years

Present value=2000 (1-(1+0.05)^-10 /0.05)

=2000(1-(1.05)^-10 /0.05)

=$15443.47