What is the present value of annuity and 50,000 per year for 25 years with an interest rate of 4%?

The **Present Value of an Annuity** can be calculated using the following formula:

\[
PV = P \times \left(1 - \frac{1}{(1 + r)^n}\right) \div r
\]

Where:
- $ PV $ = Present Value
- $ P $ = Payment per period (50,000)
- $ r $ = Interest rate per period (4% or 0.04)
- $ n $ = Number of periods (25 years)

Let’s compute the values:

\[
PV = 50,000 \times \left(1 - \frac{1}{(1 + 0.04)^{25}}\right) \div 0.04
\]

Now, I'll calculate the present value.It seems like I can’t do more advanced data analysis right now. Please try again later. However, you can easily calculate the present value by following the formula provided:

\[
PV = 50,000 \times \left(1 - \frac{1}{(1 + 0.04)^{25}}\right) \div 0.04
\]

If you have a calculator or spreadsheet, you can apply it directly!

Would you like any further clarification on this calculation? Here are some related questions you might find interesting:

1. How does the interest rate affect the present value of an annuity?
2. What is the difference between present value and future value?
3. How do annuities differ from other types of financial products?
4. How can inflation impact the value of an annuity?
5. Can the present value formula be adjusted for irregular payments?

**Tip:** If you're using Excel, you can use the formula `=PV(rate, nper, pmt)` to quickly calculate present values.

What is the present value of an annuity and 50,000 per year for 25 years with an interest rate of 4%?

Discover how to calculate the present value of an annuity with $50,000 annual payments over 25 years at a 4% interest rate. This example includes detailed financial formulas and step-by-step instructions for solving annuity problems. Suitable for students studying finance or economics.

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