calculate the present value of the annuity. (round your answer to the nearest cent.)
$1300 monthly at 6.4% for 30 years

Ans. the present value of $1,300/month, at 6.4% compounded monthly for 360 months (30 years) is $207,831.77

Step-by-step explanation:

Hi, first, we have to turn that 6.4% compound monthly rate into an effective rate, one that meets the units of the payment, in our case, effective monthly, that is:

Therefore, our effective monthly rate is 0.5333%, and clearly the time of the investment is 30 years*12months=360 months.

Now, we need to use the following formula.

Everything should look like this.

Therefore

Best of luck.

1.5%

step-by-step explanation: