Hello, actsci231!

The wording is confusing . . .

I don't understand the use of dates.Find the present value to the nearest dollar on January 1 ?

of an annuity which pays $2,500 every month for 10 years.

The first payment is due on the next April 1 ?

and the rate of interest is 11% convertible monthly.

The answer i got was 24104.02971.

Can anyone pls help confirm this with steps? Thanks

. . And what do they mean by "first payment is due"?

I interpret the problem like this:

We want to collect $2500 per month, starting next month.

We will deposit a sum of money (present value) now

. . and get 11% interest, compounded monthly.

Formula: . . where: .

We have: .

Hence: .

Therefore, we must deposit $181,488 now.