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What is the present value of the same annuity due

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1. Present Value of an Annuity Due If the present value of an ordinary, 5-year annuity is $5,900 and interest rates are 10 percent, what's the present value of the same annuity due?

$5,900

$5,990

$6,490

$5,400

2. Present Value of a Perpetuity A perpetuity pays $160 per year and interest rates are 6.6 percent. How much would its value change if interest rates increased to 9.1 percent?

$666.00 increase

$666.00 decrease

$400.00 decrease

$400.00 increase

Reference no: EM131870454

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