What is the PV of $100 per year for 5 years with a lump sum in...

What is the PV of $100 per year for 5 years with a lump sum in year 5 of $1,000 if the rate is 5%

Expert Solution

Solution :

The PV of $100 per year for 5 years with a lump sum in year 5 of $1,000 if the rate is 5% is = $ 1,216.47

= $ 1,216.4738 ( when rounded off to four decimal places )

= $ 1,216.47 ( when rounded off to two decimal places )

= $ 1,216 ( when rounded off to the nearest whole number )

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

jeff jeffy answered 9 months ago

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