The economy today grows at a rate of 2.2% semiannually. Ayden has an annuity that pays $1,655 at the beginning of every six month period. What is the value of Ayden's annuity if he receives it in a lump sum now instead of over the next 18 years.

Question

The economy today grows at a rate of 2.2% semiannually.  Ayden has an annuity that pays $1,655 at the beginning of every six month period.  What is the value of Ayden's annuity if he receives it in a lump sum now instead of over the next 18 years.

anonymous · Answer

PV of the annuity = 1655*(1 - 1.022^-36) / .022

anonymous · Answer

thanks!  I always get this type of question wrong!

anonymous · Answer

still not getting the answer choices  $47,862.22, $48,978.46, $49,517.22, $50,633.46

anonymous · Answer

b

anonymous · Answer

ok thanks for your help!