Its present value is equal to itself, so the first installment of the annuity deposited in the bank can be added directly.

Therefore, there will be a formula like this: Present value of immediate annuity = annuity * 1 - (1 + interest rate) ^ - (number of periods - 1) / interest rate + annuity. Substitute the data in the question into the formula: present value of immediate annuity =

10000*1-(1+10%)^-(5-1)/10% + 10000=41698.65 yuan. Therefore, the answer is B. Prepaid annuity is also called immediate annuity. It refers to an annuity that is paid in equal amounts at the beginning of each period.

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The difference between a prepaid annuity and an ordinary annuity is the timing of payments.

Calculation of the future value of a prepaid annuity.

The future value of a prepaid annuity is the sum of the compound interest future values ??of equal payments at the beginning of each period within a certain period.

Refers to equal amounts of money received or paid at the beginning of each period at the same time intervals within a certain period.

The only difference between an immediate annuity and an ordinary annuity is the timing of payments.

When using the postpayment annuity coefficient table to calculate the future value and present value of an immediate annuity, you can make adjustments using the calculation formulas for the future value and present value based on the postpayment annuity.

An n-period immediate annuity is equivalent to the sum of an (n-1)-period ordinary annuity and the cash flow in each period.

Future value of immediate annuity: F=A·[(F/A, i, n+1)-1] Present value of immediate annuity: P=A·[(P/A, i, n-1)+1]

Equal payment means that cash inflows and cash outflows in the analyzed system can occur at multiple points in time instead of concentrating on one point in time, that is, a sequence of cash flows is formed, and the amounts of this sequence of cash flows are equal.

of.

Basic formulas: Equal installments payment includes four basic formulas: (1) Equal installments payment formula of future value F=A×, which can also be expressed as F=A(F/A, i, n) (2) Equal installments payment sinking fund formula A

=F× is the sinking fund coefficient, so the above formula can also be expressed as A=F(A/F, i, n) (3) The present value formula of equal payments P=A× can also be expressed as: P=A(

P/A, i, n) (4) The capital recovery formula of equal installments A=P× can also be expressed as: A=P(A/P, i, n) The terminal value of equal installments refers to the interval between

The sum of a fixed amount paid over equal time periods (often called installments), the individual installments, and the compound interest that accrues on these installments.

The equal-payment sinking fund refers to raising a sum of funds needed n years in the future. When the interest rate is i, find the amount of funds deposited in equal amounts at the end of each interest-bearing period, or the terminal value F is known. Find

The equivalent annual value A is the inverse operation of the formula for the future value of equal payments.

Equally paid capital recovery refers to the initial investment P, when the interest rate i and the number of recovery periods n are fixed values, how much funds must be withdrawn at the end of each period, so that all principal and interest can be withdrawn at the end of the nth period, that is, all

Cost and profit recovery.