Find the present value of the following annuity due: $375 per month, for ten years, at 9 percent simple rate.

My answer: PV = $29,825.16

Is this correct? seems abnormally high

Yes it is correct

Present value of an annuity due if given by the formula

PV = Pmt x (1 + i) x (1 - 1 / (1 + i)^n) / i

Pmt= 375

i=9/12% =0.75%

n= 10 x 12 = 120 months

PV = 375 x (1 + 0.75%) x (1 - 1 / (1 + 0.75%)^120) / 0.75%

PV = 29,825.16

Find the present value of the following annuity due: $375 per month, for ten years, at 9 percent simple rate.

My answer: PV = $29,825.16

Is this correct? seems abnormally high