What is the present value of $19,000 deposited at the end of each year for 33 years earning 11.5% interest?

To find the present value of an annuity, such as the scenario where $19,000 is deposited at the end of each year for 33 years, you can use the present value of annuity formula. The formula takes into consideration the amount of each payment, the interest rate, and the total number of payments.

In this case, the interest rate is 11.5% and the number of payments is 33 years. The present value of an annuity formula is given by:

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

where ( PV ) is the present value, ( P ) is the payment amount per period ($19,000), ( r ) is the interest rate per period (11.5% or 0.115), and ( n ) is the total number of periods (33).

Plugging in the values:

• ( P = 19,000 )
• ( r = 0.115 )
• ( n = 33 )

This calculation will yield an accurate present value of the annuity. After performing the calculations, the correct value results in approximately $160,667.67