Question

What is the present value of $3,525 per year, at a discount rate of 10 percent,...

What is the present value of $3,525 per year, at a discount rate of 10 percent, if the first payment is received 7 years from now and the last payment is received 25 years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Present value=Cash flows*Present value of discounting factor(rate%,time period)

=3525/1.1^7+3525/1.1^8+..........+3525/1.1^25

=3525[1/1.1^7+1/1.1^8+..............+1/1.1^25]

=(3525*4.721779319)

=$16644.27(Approx).

Add a comment
Know the answer?
Add Answer to:
What is the present value of $3,525 per year, at a discount rate of 10 percent,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • what is the present value of 4300 per year at discount of 10%if first payment is...

    what is the present value of 4300 per year at discount of 10%if first payment is received in 6 years from now and the last payment is received 20 years from now 4 Problem Set i Saved 2 What is the present value of $4,300 per year at a discount rate of 10 percent if the first payment is received 6 years from now and the last payment is received 20 years from now? (Do not round intermediate calculations and...

  • What is the value today of $4.200 per year, at a discount rate of 8 percent,...

    What is the value today of $4.200 per year, at a discount rate of 8 percent, if the first payment is received 7 years from today and the last payment is received 25 years from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.9. 32.16.) Value today Book

  • Problem 6-47 Present Value and Multiple Cash Flows [LO1] What is the value today of $4,700...

    Problem 6-47 Present Value and Multiple Cash Flows [LO1] What is the value today of $4,700 per year, at a discount rate of 9 percent, if the first payment is received 5 years from today and the last payment is received 15 years from today? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

  • What is the present value of $1,800 per year, at a discount rate of 14 percent...

    What is the present value of $1,800 per year, at a discount rate of 14 percent if the first payment is received 6 years from now and the last payment is received 30 years from now? Group of answer choices $6,199.74 $6,238.87 $6,333.33 $6,425.25 $6,511.08

  • What is the present value of an annuity of $5,000 per year, with the first cash...

    What is the present value of an annuity of $5,000 per year, with the first cash flow received three years from today and the last one received 25 years from today? Use a discount rate of 8 percent. (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16))

  • What is the value today of an annuity of $5,600 per year, with the first cash...

    What is the value today of an annuity of $5,600 per year, with the first cash flow received three years from today and the last one received 25 years from today? Use a discount rate of 8 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  • Given a discount rate of 4.8 percent per year, what is the value at Year 10...

    Given a discount rate of 4.8 percent per year, what is the value at Year 10 of a perpetual stream of $3,200 annual payments that begins at Year 20? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Perpetuity value

  • . What is the present value of $1,800 per year, at a discount rate of 12...

    . What is the present value of $1,800 per year, at a discount rate of 12 percent, if the first payment is received 4 years from now and the last payment is received 22 years from now? $2,453.15 $9,437.07 $9,248.32 $13,258.40 <this was wrong $9,288.31

  • Problem 6-4 Calculating Annuity Present Value [LO1] An investment offers $6,400 per year for 15 years,...

    Problem 6-4 Calculating Annuity Present Value [LO1] An investment offers $6,400 per year for 15 years, with the first payment occurring on year from now. If the required return is 6 percent, what is the value of the investment? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g. 32.16.) Present value What would the value be if the payments occurred for 40 years? (Do intermediate calculations and round your final answer to 2 decimal...

  • What is the value today of $1,800 per year, at a discount rate of 10 percent,...

    What is the value today of $1,800 per year, at a discount rate of 10 percent, if the first payment is received 8 years from now and the last payment is received 32 years from today?

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT