Annuity Present Values What is the present value of an annuity of $2,000 per year, with the

first cash flow received three years from today and the last one received 22 years from today?
Use a discount rate of 8 percent.

To calculate the present value of an annuity, you can use the formula:

PV = P * ((1 - (1 + r)^(-n)) / r)

Where:
PV = Present Value
P = Payment per period (in this case, $2,000)
r = Interest rate per period (8% or 0.08)
n = Number of periods (22 - 3 = 19)

Let's plug in the values into the formula to calculate the present value:

PV = $2,000 * ((1 - (1 + 0.08)^(-19)) / 0.08)

PV = $2,000 * ((1 - (1.08)^(-19)) / 0.08)

To simplify the calculation, let's use a calculator or spreadsheet software to evaluate the expression inside the parentheses, (1 - (1.08)^(-19)).

After performing the calculation, we find that (1 - (1.08)^(-19)) equals 11.6820874.

Now, let's substitute this value back into the formula:

PV = $2,000 * (11.6820874 / 0.08)

PV = $23,364.17

Therefore, the present value of the annuity is approximately $23,364.17.