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28) You have come up with a forecast of your future earnings. You believe you will...

28) You have come up with a forecast of your future earnings. You believe you will earn:

  • $20,000 next year (one-year from now);
  • $40,000 two years from now;
  • $60,000 three years from now; and,
  • $100,000 four years from now and every year there-after for another 29 years (30 such years in total)

Assume your earnings in all of these years are received as one lump-sum payment at the end of every year. Assume your personal discount rate is 8%.

What is the present value of your estimated future income?

* I need to be able to show my work, the steps to understand the question.

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Expert Solution

SOLUTION:-

SOLVED WITH FINANCIAL FORMULAS OF PVIF AND PVIFA

jeff jeffy answered 1 month ago
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