Computing Present Value of Annuity Payments Under Different Assumptions Compute the present value of the annuity stream for each of the four separate investment scenarios that follow. • Round interest rate percentages to two decimal places in your calculations (for example, enter .0063 for .633333%). • Round final answer to the nearest whole dollar. • Do not use a negative sign with your answer. Investment 1 Investment 2 Investment 3 Investment 4 Annual interest rate 7% 6% 5% 8% 5 6 5 10 Investment period in years Compounding periods Payment per compounding period First payment Present Value Quarterly Annually Semiannually Monthly $5,000 $18,000 $10,000 $1,000 Beg. of period End of period End of period Beg. of period $ $ $ $
