What is the value today of an investment that pays $500 every year - 4571

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What is the value today of an investment that pays $500 every year at year-end during the next 15 years if the annual interest rate is 9%?

a.$4,030.50

b.$7,500.00

c.$3,500.00

d.$7,000.00

          A constant uniform payment, over a period, is an annuity. The present value, of an annuity is given by 

 

Solution Description

What is the value today of an investment that pays $500 every year at year-end during the next 15 years if the annual interest rate is 9%?