What is the PV of an ordinary annuity with 10 payments of $2,700 if the appropriate interest rate is 5.5%? Group of answer choices $18,367 $20,352 $16,576 $17,449 $19,334

The PV of an ordinary annuity with 10 payments of $2,700 if the appropriate interest rate is 5.5% is $20,352.

Step-by-step explanation:

P = PMT [(1 - (1 / (1 + r))) / r]

= 2,700 [(1 - (1 / (1 + 0.055))) / 0.05]

= 2,700 [(1 - (1 / (1 + 0.055))) / 0.05]

= 2,700 [(1 - (1 / (1.708)) / 0.05]

= 2,700 [(1 - 0.58)) / 0.05]

= 2,700 [(0.41457) / 0.05]

= 2,700(7.53)

=$ 20,352

answer:

payment just for service  

→

$

87.12

payment for service including tax

→

$

94.09

explanation:

service only with 20% tip  

→

$

72.6

(

1

+

20

100

)

=

$

87.12

in the opening of the question the word 'service' is associated only with the pretax value.

the closing part of the question asks: how much did she pay for the  

service

−−−−−−  

so technically the answer is  

→

$

72.6

(

1

+

20

100

)

=

$

87.12

however, the intention of the question provider may have been that your answer is to be  

$

87.12

(

1

+

8

100

)

=

$

94.09

to 2 decimal places.

'

payment just for service  

→

$

87.12

payment for service including tax

→

$

94.09

tony b

mar 21, 2017

answer:

trying to explain it another way

explanation:

service charge  

.

→

$

72.60

20% tip  

20

100

×

$

72.60

=

$

14.52

−−−−−−  

←

add

$

87.12

tax  

8

100

×

$

87.12

=

$

6.97

−−−−−  

←

add

$

94.09

related questions

yes

step-by-step explanation: