What is the present value of an annuity due of 1000 per year for 12 years at 5 percent interest?

To calculate the present value of an annuity due, you can use the formula: ( PV = P \times \left(1 + r\right) \times \frac{1 - (1 + r)^{-n}}{r} ), where ( P ) is the payment per period, ( r ) is the interest rate, and ( n ) is the number of periods. Substituting in the values ( P = 1000 ), ( r = 0.05 ), and ( n = 12 ), the present value of the annuity due is approximately $11,021.88. This accounts for the fact that payments are made at the beginning of each period.