Читать книгу Fundamentals of Financial Instruments - Sunil K. Parameswaran - Страница 111

David Mathew has just bought an insurance policy from MetLife. The annual premium is $2,500, and he is required to make 25 payments. What is the present value of this annuity due if the discount rate is 8% per annum?

Thus the present value of the annuity due is: