The equation would be:

Present Value = 50,000 / (1.06)^1 + 50,000 / (1.06)^2 + … + 50,000 / (1.06)^20

The answer is $573,496.06

Exercise of Ordinary Annuity Cash Flow (determining FV)

Joe Moran wishes to determine how much money he will have at the end of 5 years if he chooses the ordinary annuity. It represents deposits of $1,000 annually, at the end of each of the next 5 years, into a savings account paying 7% annual interest. How much will Joe Moran get at maturity? Post your answer by showing the calculation.

Answer:

$1000 * 5.75073901 = $5750.74

At the future value table: Future value of ordinary annuity for 5 years at seven percent = 5.75073901.

On January 1, a company issues bonds with a par value of $300,000. The bonds mature in 5 years and pay 8% annual interest each June 30 and December 31. On the issue date, the market rate of interest is 6%. Compute the price of the bonds on their issue date. The following information is taken from present value tables:

Present value of annuity for 10 periods @ 3%…8.5302
Present value of annuity for 10 periods @ 4%…8.1109
Present value of 1 due in 10 periods @ 3%…0.7441
Present value of 1 due in 10 periods @ 4…0.6756

I cannot even figure out where to begin!!! Can someone please help me!!! I am desperate!!!

Discount all the interest payments for 5 years at 6 percent and then discount the par value at 6 percent and add the two together.

c/(1+i) +…..c/(1+i)^n + M/(1 + i)^n

My father died with an outstanding work comp annuity, I’m the beneficiary, but the insurance company is giving me the run around. I gave them the information that they asked for and they still won’t tell me any thing. My question is, should I get legal representation?

No one here can tell you to get an attorney or not. You have to make that decision for yourself. But keep in mind….attorneys are not cheap.