Rachael wants to receive monthly payments of $2,775 for 20 years. How much does she have to invest now in an annuity that offers an annual interest rate of 6%? Round your answer to the nearest $100.

$387,336.64 1

Step-by-step explanation:

The computation of the amount invested now is shown below:

Here we use the present value formula i.e. to be shown in the spreadsheet

Given that,  

Future value = $0

Rate of interest = 6%  ÷ 12 months = 0.5%

NPER = 20 years × 12 months = 240 months

PMT = $2,775

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value is $387,336.64 1

choose (5, 1.5) and (-1.5,-3.5)

step-by-step explanation:

5 - 1.5 =3.5

-1.5 - (-3.5) = 2

3.5 + 2 =5.5

hope this !