A customer will pay $35 per month at the beginning of each month to her Internet...
A customer will pay $35 per month at the beginning of each month to her Internet provider for the next 8 years. Determine the net present value of these payments if the annual discount rate is 16%.
Homework Answers
Ans 1923.95
| Annuity PV Due = | P + P [ 1 - ( 1 + r )-n ] |
| r | |
| 35 + 35 * ( 1 - ((1 / (1 + 16%/12)^96)))/ (16% / 12) | |
| 35 + 1888.953 | |
| $ 1923.953 | |
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