The present annuity value of six years with a 12% discount rate will be $102791.
According to the formula of present value here we have the solution;
P=PMT× 1- [1/(1+r)n ]÷r
P= Present value of annuity value of this year =?
PMT= $ amount of every annuity value = $25,000
r = DIscount rate = 12%/100 = 0.12
n= No. of years = 6 years
Solution:
P= $25,000 x 1 - [ 1/ (1+ 0.12)^6] = $25,000 x 0.4934/ 0.12
P= $25,000 x 4.112
P= $102791
Hence, the solution is here above. That is the present value of this annuity.
For more questions like this series of cash flow and annuity visits;
brainly.com/question/15150875?referrer=searchResults
#SPJ4
