The PV of an ordinary annuity with 10 payments of $2,700 if the appropriate interest rate is 5.5% is $ 20351.59.
An annuity is a settlement between you and a coverage corporation that requires the insurer to make bills to you, either straight away or within the future. You buy an annuity by way of making both an unmarried payment and a sequence of bills.
An annuity is a series of payments made at the same durations. Examples of annuities are normal deposits to a financial savings account, month-to-month home loan bills, monthly insurance payments, and pension bills. Annuities can be classified through the frequency of charge dates.
2700/(1+0.055)^1 2559.24
2700/(1+0.055)^2 2425.82
2700/(1+0.055)^3 2299.36
2700/(1+0.055)^4 2179.49
2700/(1+0.055)^5 2065.86
2700/(1+0.055)^6 1958.16
2700/(1+0.055)^7 1856.08
2700/(1+0.055)^8 1759.32
2700/(1+0.055)^9 1667.60
2700/(1+0.055)^10 1580.66
_______________
PV = 20351.59
Learn more about annuity here:-https://brainly.com/question/5303391
#SPJ4
