Question
In: Finance
Assume the appropriate discount rate is 8%. What is the value 10years from today of...
Assume the appropriate discount rate is 8%. What is the value 10 years from today of an annuity that makes payments of $5,000 per year if the first payment is made 11 years from now and the last payment is made 18 years from now?
Solutions
Expert Solution
| We have to use financial claculator to solve this | |||
| Put in calculator | |||
| FV | 0 | ||
| PMT | -5000 | ||
| I | 8% | ||
| N | 8 | ||
| Compute PV | $28,733.19 | ||
| Ans = | $28,733.19 |
jeff jeffy answered 2 years agoRelated Solutions
Assume the appropriate discount rate is 8%. What is the value 10 years from today of...
Assume the appropriate discount rate is 8%. What is the value 10
years from today of an annuity that makes payments of $5,000 per
year if the first payment is made 11 years from now and the last
payment is made 18 years from now?
Assume the appropriate discount rate is 6%. What is the value 6 years from today of...
Assume the appropriate discount rate is 6%. What is the value 6
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Assume the appropriate discount rate is 6%. What is the value 6 years from today of...
Assume the appropriate discount rate is 6%. What is the value 6
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Round the final answer to 2 decimal places. Omit any commas and the
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