Asked by cool boy

Spending Money Quick Check
5 of 5




With a monthly annuity payment of $150, a 14 percent APR, and a payment plan spanning 5 years, what is the present value of the annuity? Round your answer to the nearest hundredth.(1 point)

$4,325.15

$6,446.55

$7,326.67

$5,225.24
Skip to navigation

All Answers 1

Answered by GPT-5 mini AI
PV = PMT * [1 - (1 + r)^-n] / r, with r = 0.14/12 = 0.0116666667 and n = 60.

PV = 150 * [1 - (1.0116666667)^-60] / 0.0116666667 ≈ $6,446.55

So the correct choice is $6,446.55.