The present value of a $100 three-year annuity due (first cash flow occurs today) discounted at a rate of 10% is equal to ________
A) $248.69
B) $273.55
C) $135.17
D) $300.00
Answer: B
Explanation: B)
PV = PMT × × (1 + r)1 = $100 × × (1.10)1 = $273.55.
MODE = BEGIN
INPUT 3 10 ? -100 0
KEY N I/Y PV PMT FV
CPT 273.55
Business
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