What is the present value of annuity

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1. A 10 year annuity pays 1,450 per month and payments are made at the end of each month. If the interest rate is 9 percent compounded monthly for the first four years, and 7 percent compounded monthly thereafter, what is the present value of the annuity?

2. What is the profitability index of a project that costs $10,000 and provides cash flows of $4,000 in years 1 and 2 and $6,000 in years 3 and 4? The discount rate is 10%. (Do not round intermediate calculations. Round your answer to 4 decimal places.)

Reference no: EM131859572

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