## Annuity Value:

The present value of the annuity is the discounted present sum of the equal payments received over time. When the first payment is received right away, it is an annuity due.

The present value of the annuity due is $35,104.06 The formula for annuity due is: {eq}PV= C + ( C\times \dfrac{1-(1+r)^{-(n-1)}}{r} ) {/eq} Here: Present value (PV) is required Payment (C) =$4659

r (rate) =13.86% / 2 = 6.93% or 0.0693

n = 5 * 2 = 10

Substituting the formula:

{eq}PV = $4659 + ($4659 \times \dfrac{1-(1+0.0693)^{-(10-1)}}{0.0693}) {/eq}

{eq}PV = $4659 + ($4659 \times 6.534677574) {/eq}

{eq}PV = $4659 +$30,445.06 {/eq}

{eq}PV = \$35,104.06 {/eq}