
Expert Answer
(a) Present value = Annuity × Present value factor of annuity table(12%,7 periods) = $51,090 × 4.56376 = $233,162
(b) Present value = Annuity × Present value factor of annuity table(10%,16 periods) = $51,090 × 7.82371 = $399,713

(a) Present value = Annuity × Present value factor of annuity table(12%,7 periods) = $51,090 × 4.56376 = $233,162
(b) Present value = Annuity × Present value factor of annuity table(10%,16 periods) = $51,090 × 7.82371 = $399,713