## Present Value of an Annuity:

To answer this question, use the present value of an annuity formula to calculate the value when interest rates are 10 percent, 5 percent, and 15 percent, using \$7,300 as your payment and 20 years as the timeline.

Use the PV annuity formula:

{eq}PV = P \frac{1 - (1+r)^-n}{r} {/eq}

Where:

• "P" = Annuity Payment
• "r" = discount rate
• "n&q...

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