Present value of given annuity


Consider an ordinary annuity with seven cash flows of $4800 each. The cash flows occur at the end of each year, beginning one year from today. Assuming the interest rate is 9% per year, what is the present value of this annuity?

A. $23,980

B. $25,435

C. $24,158

D. $27,047

E. $25,165

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Finance Basics: Present value of given annuity
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