What is the present value of a 10-year ordinary annuity of 20000 using a 7 percent discount rate?
Year Amount Disc Rate Present Value
1 20000 1.0700 18692
2 20000 1.1449 17469
3 20000 1.2250 16326
4 20000 1.3108 15258
5 20000 1.4026 14260
6 20000 1.5007 13327
7 20000 1.6058 12455
8 20000 1.7182 11640
9 20000 1.8385 10879
10 20000 1.9672 10167
Total PV 140472