A customer will pay $160 per quarter at the beginning of each quarter to her Internet...

Question

Question

A customer will pay $160 per quarter at the beginning of each quarter to her Internet provider for the next 7 years. Determine the net present value of these payments if the annual discount rate is 12%.

business finance

Answer 1

Answer #1

Present value is calculated using the PV function as:-

=PV(rate,nper,pmt,fv,1)

=PV(12%/4,7*4,-160,,1)

=3092.33

Answer 2

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